Remi Edelstahl Tubulars Downgraded to 'Sell' by MarketsMOJO, Weak Fundamentals and High Debt to Blame

Remi Edelstahl Tubulars, a microcap company in the iron and steel industry, has recently been downgraded to a 'Sell' by MarketsMOJO on June 11, 2024. This decision was based on the company's weak long-term fundamental strength, with an average Return on Capital Employed (ROCE) of 2.68%. Additionally, the company has a high Debt to EBITDA ratio of 4.52 times, indicating a low ability to service debt.
The stock is also considered to be expensive, with an ROCE of 3.2 and an Enterprise value to Capital Employed ratio of 1.7. However, it is currently trading at a discount compared to its average historical valuations. Despite generating a return of 138.25% in the past year, the company's profits have only risen by 123%, resulting in a low PEG ratio of 0.1.

On a positive note, Remi Edelstahl Tubulars has shown strong results in the first quarter of 2024, with the highest net sales, PBDIT, and PBT LESS OI. The stock is also technically in a mildly bullish range, with multiple factors such as MACD, KST, DOW, and OBV indicating a bullish trend.

The majority shareholders of the company are the promoters, and the stock has a history of market-beating performance in both the long term and near term. In the last year, it has generated 138.25% returns and has outperformed BSE 500 in the last 3 years, 1 year, and 3 months. However, considering the recent downgrade by MarketsMOJO, investors may want to carefully evaluate the company's financials before making any investment decisions.