Parmax Pharma Receives 'Sell' Rating Due to Weak Fundamentals and Debt Struggles

Parmax Pharma, a microcap pharmaceutical company, has recently received a 'Sell' rating from MarketsMOJO. This downgrade is based on the company's weak long-term fundamental strength, poor growth in net sales and operating profit, and its inability to service its debt effectively.
In the last five years, Parmax Pharma has only seen a modest annual growth rate of 6.32% in net sales and 6.65% in operating profit. This, coupled with a low EBIT to interest ratio of 0.66, indicates the company's struggle to generate profits and manage its debt.

The company's performance in the recent quarter has also been lackluster, with its PBDIT and PBT LESS OI at their lowest levels and EPS at a low of Rs -3.66. This trend is reflected in the stock's -14.63% return in the last year, underperforming the BSE 500 index.

In addition, Parmax Pharma's technical indicators are mildly bullish, with its MACD and KST factors also showing a bullish trend. However, with a ROCE of -0.7, the stock is currently trading at an attractive valuation with a 2 Enterprise value to Capital Employed.

It is worth noting that the majority of the company's shareholders are non-institutional, which may indicate a lack of confidence in the company's future prospects. Overall, Parmax Pharma's recent downgrade to a 'Sell' rating highlights its below-par performance in both the long and near term.