Orbit Exports Downgraded to 'Sell' by MarketsMOJO, Despite Strong Quarter and Attractive Valuation

Orbit Exports, a microcap company in the textile 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 with only a 7.30% increase in net sales and 8.45% in operating profit over the last 5 years. The stock is also currently in a Mildly Bearish range, with a technical trend that has deteriorated since November 12, 2024, resulting in -2.78% returns.
In addition, Orbit Exports has underperformed the market in the last year, with negative returns of -14.46% compared to the market's 27.99% returns. However, the company does have a low Debt to Equity ratio of 0.07 times, which is a positive factor.

On a more positive note, Orbit Exports did have a strong quarter in September 2024, with the highest net sales, PBDIT, and PAT at Rs 60.17 cr, Rs 15.95 cr, and Rs 16.00 cr respectively. The company also has an attractive valuation with a ROE of 14.2 and a 1.8 Price to Book Value. It is currently trading at a discount compared to its historical valuations.

It is worth noting that the majority shareholders of Orbit Exports are the promoters of the company. Overall, while the stock has had a negative return in the past year, its profits have increased by 3.6%, resulting in a PEG ratio of 2.2. Investors should carefully consider these factors before making any decisions regarding Orbit Exports.