Rossell India Faces Declining Performance Amid Rising Costs and Debt Challenges

Rossell India, a microcap company in the FMCG sector, has recently experienced an adjustment in its evaluation score. This revision reflects a shift in technical indicators, which have transitioned from a mildly bearish stance to a bearish outlook.
The company's performance metrics reveal a challenging landscape. Over the past year, Rossell India has reported a significant decline in stock returns, with a drop of 88.88%, contrasting sharply with the BSE500 index. Additionally, the company has faced a 24.32% decrease in net sales over the last nine months, while raw material costs have risen by 13.76% year-over-year.

Financially, Rossell India has shown a negative compound annual growth rate (CAGR) of 14.73% in operating profits over the past five years, coupled with a high debt-to-EBITDA ratio of 3.54 times, indicating challenges in servicing its debt. The return on equity stands at an average of 7.59%, suggesting limited profitability relative to shareholders' funds.

Despite these hurdles, the stock is trading at a discount compared to its peers' historical valuations, with a PEG ratio of 0.1.

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