Oriental Carbon & Chemicals Downgraded to 'Sell' by MarketsMOJO: Poor Growth and Bearish Trend

Oriental Carbon & Chemicals, a microcap company in the chemicals industry, has recently been downgraded to a 'Sell' by MarketsMOJO on June 24, 2024. This decision was based on several factors, including poor long-term growth, flat results in the last quarter, and a technically bearish trend. One of the main reasons for the downgrade is the company's poor long-term growth. Over the last 5 years, Oriental Carbon & Chemicals has seen a decline in its operating profit at an annual rate of -6.60%. In addition, the company's profits have fallen by -5.1% in the past year, while the stock has only generated a return of -2.99%. This consistent underperformance against the benchmark BSE 500 is a cause for concern. Furthermore, the company's technical trend has deteriorated from mildly bullish to mildly bearish on June 24, 2024. The key technical factor, MACD, has been bearish since the same date. This indicates a potential downward trend in the stock's performance. In terms of valuation, Oriental Carbon & Chemicals is currently trading at a premium compared to its historical average. With a price to book value of 1.2 and a ROE of 7.2, the stock is considered expensive. This, coupled with the company's underperformance, makes it a less attractive investment option. It is also worth noting that Oriental Carbon & Chemicals has a low debt to equity ratio of 0.05 times, which is a positive factor. However, the majority shareholders of the company are promoters, which may limit the influence of other shareholders. In conclusion, MarketsMOJO's downgrade of Oriental Carbon & Chemicals to 'Sell' is based on its poor long-term growth, flat results, bearish technical trend, and expensive valuation. Investors should carefully consider these factors before making any investment decisions.