Repro India Receives 'Sell' Rating from MarketsMOJO

Repro India, a smallcap company in the printing and publishing industry, has recently received a 'Sell' rating from MarketsMOJO on November 20, 2023. This downgrade is based on several factors that indicate weak long-term fundamentals for the company.
One of the main reasons for the 'Sell' rating is the company's average Return on Capital Employed (ROCE) of 3.76%, which is considered weak. Additionally, Repro India has shown poor long-term growth with only a 5.40% annual growth in net sales over the last 5 years. The company also has a high Debt to EBITDA ratio of 4.06 times, indicating a low ability to service debt.

Furthermore, the stock is currently trading at a premium with a Price to Book Value of 3.1, making it an expensive investment. However, it is currently trading at a discount compared to its historical valuations.

On the positive side, Repro India has declared positive results for the last 9 consecutive quarters, with a significant growth in profits and net sales. The company's ROCE for the last half-year is also the highest at 5.96%.

Technically, the stock is in a mildly bullish range with multiple indicators such as MACD, Bollinger Band, and KST showing bullish signals. Additionally, there has been an increase in institutional investors' participation, with a 3.91% increase in their stake in the company.

Despite the recent downgrade, Repro India has shown market-beating performance with a return of 110.75% in the last year, much higher than the market (BSE 500) returns of 16.72%. However, it is important to note that this performance may not be sustainable in the long run.

Investors should carefully consider all these factors before making any investment decisions regarding Repro India. It is always recommended to conduct thorough research and analysis before investing in any company.