Oricon Enterprises Receives 'Sell' Rating from MarketsMOJO

Oricon Enterprises, a microcap company in the shipping industry, has recently received a 'Sell' rating from MarketsMOJO on November 7, 2023. This downgrade is based on the company's weak long-term fundamental strength, with a -26.20% CAGR growth in operating profits over the last 5 years. Additionally, the company's ability to service its debt is also a concern, with a poor EBIT to Interest (avg) ratio of 0.11.
In the latest quarter, Oricon Enterprises reported negative results, with a PBT LESS OI(Q) of Rs -5.20 crore, a decrease of -129.1% from the previous quarter. The company's PAT(HY) also saw a decline of -38.59%, standing at Rs 11.69 crore. Furthermore, the company's NET SALES(Q) were at their lowest at Rs 89.50 crore.

Other factors contributing to the 'Sell' rating include the stock being in a Mildly Bullish range and multiple bullish indicators such as MACD, KST, and OBV. However, with a ROE of 0.7, the stock is considered to have a very attractive valuation with a 0.4 Price to Book Value. It is also currently trading at a discount compared to its average historical valuations.

Despite generating a return of 10.90% over the past year, Oricon Enterprises has seen a significant decline in profits by -72.2%. The majority shareholders of the company are the promoters, indicating their confidence in the company's future prospects.

Overall, the downgrade to 'Sell' by MarketsMOJO highlights the weak performance and fundamental strength of Oricon Enterprises. Investors should carefully consider these factors before making any investment decisions.