NGL Fine Chem Downgraded to 'Sell' by MarketsMOJO, Poor Long-Term Growth and Bearish Outlook Indicated.

NGL Fine Chem, a smallcap pharmaceutical company, has recently been downgraded to a 'Sell' by MarketsMOJO on October 1, 2024. This decision was based on poor long-term growth, with the company's operating profit declining at an annual rate of -1.33% over the last 5 years. In addition, the company's results for June 2024 were flat, with its operating cash flow, debtors turnover ratio, and PBDIT all at their lowest levels.
Technically, the stock is currently in a Mildly Bearish range, with its technical trend deteriorating from Mildly Bullish on October 1, 2024. Since then, the stock has generated a negative return of -1.29%. Multiple factors, such as MACD, Bollinger Band, and KST, also indicate a bearish outlook for the stock.

Furthermore, NGL Fine Chem has an expensive valuation with a price to book value of 4.7 and a ROE of 15.7. However, the stock is currently trading at a discount compared to its average historical valuations. In the past year, the stock has only generated a return of 1.68%, despite its profits increasing by 45.1%. This gives the company a PEG ratio of 0.7.

Interestingly, despite its small size, domestic mutual funds hold a mere 0% stake in the company. This could suggest that they are either not comfortable with the current price or have not conducted in-depth research on the company.

In the last year, NGL Fine Chem has underperformed the market, with a return of only 1.68% compared to the market's return of 39.61% (BSE 500). However, the company does have a low debt to equity ratio (average) of 0.02 times.

Overall, based on the recent downgrade and various factors, it may be wise for investors to consider selling their shares in NGL Fine Chem.