Paramount Cosmetics (India) Downgraded to 'Sell' by Leading Stock Analysis Platform

Paramount Cosmetics (India) has recently been downgraded to a 'Sell' by MarketsMOJO, a leading stock analysis platform. This decision was based on the company's weak long-term fundamental strength, high debt to EBITDA ratio, and low profitability per unit of shareholders' funds.
In the last quarter, the company reported flat results with its PBDIT(Q) at the lowest at Rs -0.37 cr and PBT LESS OI(Q) at the lowest at Rs -0.99 cr. Additionally, its non-operating income was 496% of its profit before tax, indicating a reliance on non-operating sources for profitability.

Furthermore, Paramount Cosmetics (India) has underperformed the market in the last year, with a return of only 11.98% compared to the market's return of 32.27%. However, the stock is currently in a mildly bullish range, with its MACD and OBV technical factors also showing bullish signals.

Despite its current performance, the stock has an attractive valuation with a ROCE of 5 and an enterprise value to capital employed ratio of 1. This is further supported by the fact that the stock is currently trading at a discount compared to its average historical valuations.

In the past year, while the stock has generated a return of 11.98%, its profits have risen by 122%, resulting in a PEG ratio of 0.2. This indicates that the stock may have potential for growth in the future.

Overall, while Paramount Cosmetics (India) may not be performing well currently, its attractive valuation and potential for growth make it a stock to keep an eye on. However, investors should carefully consider their options before making any investment decisions.