Mayur Uniquoters downgraded to 'Sell' by MarketsMOJO due to poor growth and valuation.

Mayur Uniquoters, a smallcap company in the footwear industry, has recently been downgraded to a 'Sell' by MarketsMOJO on November 12, 2024. This decision was based on several factors, including poor long-term growth, expensive valuation, falling participation by institutional investors, and underperformance in the market.
Over the last five years, Mayur Uniquoters has only seen a modest annual growth rate of 8.39% in net sales and a low operating profit of 1.13%. This has resulted in a ROE of 15.5, which is considered expensive with a 3 price to book value. Additionally, the stock is currently trading at a discount compared to its historical valuations.

Despite generating a return of 14.79% in the past year, the company's profits have only increased by 21.1%, resulting in a PEG ratio of 0.9. This indicates that the stock may be overvalued and not a good investment option.

Another concerning factor is the decreasing stake of institutional investors in the company. They have reduced their stake by -0.89% in the previous quarter and now collectively hold only 6.36% of the company. This is significant as institutional investors have better resources and capabilities to analyze a company's fundamentals compared to retail investors.

Furthermore, Mayur Uniquoters has underperformed the market (BSE 500) in the last year, with a return of only 14.79% compared to the market's 27.99% return. This is a clear indication of the company's poor performance.

On a positive note, the company has a low debt to equity ratio and has shown positive results in September 2024. Its ROCE (HY) is at its highest at 20.17%, while its PAT (Q) and EPS (Q) are also at their highest at Rs 39.84 crore and Rs 9.06, respectively.

However, the technical trend for Mayur Uniquoters is currently sideways, indicating no clear price momentum. The trend has deteriorated from mildly bullish on November 12, 2024, and has generated a negative return of -2.08% since then.

In conclusion, based on the above factors, it is advisable to sell Mayur Uniquoters stock at this time. Investors should carefully consider these factors before making any investment decisions.