Orient Bell . Downgraded to 'Sell' by MarketsMOJO Due to Poor Long-Term Growth and Negative Results.

Orient Bell ., a microcap company in the ceramics and allied industry, has recently been downgraded to a 'Sell' by MarketsMOJO on 2024-08-22. This decision was based on several factors, including poor long-term growth, negative results for the past 7 quarters, and a low ROCE (Return on Capital Employed) of 0.87%.
One of the main reasons for the downgrade is the company's poor long-term growth. Over the last 5 years, Orient Bell . has only seen a 3.54% growth in net sales and a 6.06% growth in operating profit. Additionally, the company has declared negative results for the past 7 consecutive quarters, with a significant decrease in profits of -42.7%.

Furthermore, the company's performance in the near term has also been below par. In the last 1 year, the stock has generated -17.02% returns and has underperformed the BSE 500 index in the last 3 years, 1 year, and 3 months. This indicates a lack of potential for growth and profitability in the near future.

Another concerning factor is the low stake held by domestic mutual funds in the company. Despite its size, domestic mutual funds only hold 0% of Orient Bell . This could suggest that they are not confident in the company's performance or its current valuation.

However, there are some positive aspects to consider. The company has a strong ability to service debt, with a low Debt to EBITDA ratio of 0.83 times. Additionally, the stock is currently in a mildly bullish range and has shown improvement in technical trends since 19-Aug-24, generating 3.34% returns since then.

In terms of valuation, Orient Bell . has a fair valuation with a ROCE of -0.1 and an Enterprise value to Capital Employed ratio of 1.8. The stock is also trading at a discount compared to its average historical valuations. However, it is important to note that while the stock has generated a return of -17.02% in the past year, its profits have fallen by -97.3%.

In conclusion, Orient Bell . may not be a favorable investment option at the moment, as indicated by the 'Sell' rating from MarketsMOJO. The company's poor long-term growth, negative results, and low stake from domestic mutual funds are all factors to consider before making any investment decisions.