Paramount Cosmetics (India) Downgraded to 'Sell' by MarketsMOJO, But Some Bullish Factors Remain

Paramount Cosmetics (India) is a microcap company in the FMCG industry. Recently, the stock has been downgraded to 'Sell' by MarketsMOJO on February 28, 2024.
The downgrade is due to weak long-term fundamental strength, with a -18.24% CAGR growth in operating profits over the last 5 years. Additionally, the company has a high debt to EBITDA ratio of 4.16 times, indicating a low ability to service debt. The return on equity (avg) of 1.34% also signifies low profitability per unit of shareholders' funds.

In December 2023, the company reported flat results, underperforming the market in the last 1 year. While the stock has generated a return of 18.09% in the last 1 year, it is much lower than the market (BSE 500) returns of 37.06%.

However, there are some bullish factors for the stock. Technically, it is in a mildly bullish range, with multiple indicators such as MACD, Bollinger Band, KST, and OBV showing positive signs.

Moreover, with a ROCE of 5, the stock has an attractive valuation with a 1 enterprise value to capital employed. It is also trading at a discount compared to its average historical valuations. In the past year, while the stock has generated a return of 18.09%, its profits have risen by 116.8%, resulting in a low PEG ratio of 0.2.

Overall, while Paramount Cosmetics (India) may have some challenges in its long-term fundamentals, there are also some positive indicators for the stock. Investors should carefully consider these factors before making any investment decisions.