Orient Paper & Industries Receives 'Sell' Rating

Orient Paper & Industries, a microcap company in the paper and paper products industry, has recently received a 'Sell' rating from MarketsMOJO on November 10, 2023.
The downgrade is based on the company's weak long-term fundamental strength, as evidenced by its operating losses and poor growth in net sales and operating profit over the last five years. Additionally, the company's ability to service its debt is also a concern, with a low EBIT to Interest ratio.

In September 2023, the company reported negative results after seven consecutive quarters of positive performance. The profit after tax has fallen by 316.2% and the operating profit to interest ratio is at its lowest at -1.55 times. The cash and cash equivalents for the first half of the year are also at a low of Rs 3.27 crore.

On the technical front, the stock is currently in a mildly bullish range. However, there are multiple bullish factors such as Bollinger Band, KST, and OBV.

Despite these factors, the company's ROCE of 7.4 is considered very attractive with a low enterprise value to capital employed ratio of 0.6. The stock is also trading at a discount compared to its historical valuations.

In the past year, the stock has generated a return of 12.52%, while its profits have seen a significant increase of 2487.7%. The majority shareholders of Orient Paper & Industries are non-institutional investors.

Investors should carefully consider these factors before making any investment decisions regarding Orient Paper & Industries.