National Fittings Receives 'Sell' Rating from MarketsMOJO Due to Poor Growth and Negative Results.

National Fittings, a microcap company in the castings/forgings industry, has recently received a 'Sell' rating from MarketsMOJO on May 9, 2024. This downgrade is due to poor long-term growth, with an annual operating profit growth rate of -5.16% over the last 5 years. Additionally, the company has recently declared negative results in December 2023 after 1 consecutive positive quarters, with a significant decrease in PBT LESS OI(Q) at Rs 1.35 crore, falling at -47.47%, and NET SALES(Q) at its lowest at Rs 16.57 crore.
Other factors contributing to the 'Sell' rating include a sideways technical trend, indicating no clear price momentum, and a deteriorated technical trend since May 9, 2024, with a -3.72% return. However, the company does have an attractive valuation with a ROCE of 12.9 and a 1.9 Enterprise value to Capital Employed. The stock is currently trading at a discount compared to its average historical valuations. Despite generating a return of 30.93% over the past year, the company's profits have only risen by 3.6%, resulting in a PEG ratio of 6.9.

It is worth noting that the majority of shareholders in National Fittings are non-institutional investors. This may indicate a lack of confidence in the company's future performance. Overall, MarketsMOJO's 'Sell' rating on National Fittings is based on factual data and signals potential concerns for the company's growth and profitability. Investors should carefully consider these factors before making any decisions regarding this microcap stock.