MarketsMOJO Downgrades Thomas Scott India to 'Sell' Based on Technical Factors

Thomas Scott India, a microcap trading company, has recently been downgraded to a 'Sell' by MarketsMOJO on September 30, 2024. This decision was based on technical factors, as the stock is currently in a Mildly Bearish range and has shown a deteriorating trend since September 27, 2024, with a return of 2.21%. The MACD and KST technical factors also indicate a Bearish trend.
In addition, the company's ROCE (Return on Capital Employed) is at 8.3, making its valuation Very Expensive with a 6 Enterprise value to Capital Employed. This is also reflected in the stock's premium trading compared to its average historical valuations. While the stock has generated a return of 119.49% in the past year, its profits have only risen by 209.3%, resulting in a PEG ratio of 0.5.

However, there are some positive factors to consider. The company has a strong ability to service debt, with a low Debt to EBITDA ratio of 1.15 times. It also has a healthy long-term growth rate, with Net Sales growing at an annual rate of 34.65% and Operating profit at 58.41%. In addition, Thomas Scott India has declared positive results for the last 6 consecutive quarters, with PAT (HY) growing at 40.73%, NET SALES (Q) at its highest at Rs 27.34 cr, and PBT LESS OI (Q) growing at 33.1%.

The majority shareholders of the company are the promoters, indicating their confidence in the company's performance. Furthermore, Thomas Scott India has consistently outperformed BSE 500 in the last 3 annual periods, along with generating a return of 119.49% in the past year. While the stock may currently be in a downward trend, it is important to consider all factors before making any investment decisions.