Rudra Global Infra Products Downgraded to 'Sell' by MarketsMOJO on Weak Fundamentals

Rudra Global Infra Products, a microcap company in the iron and steel industry, has recently been downgraded to a 'Sell' by MarketsMOJO on June 18, 2024. This decision was based on several factors, including weak long-term fundamental strength with a -1.65% CAGR growth in operating profits over the last 5 years. Additionally, the company has a high debt to EBITDA ratio of 4.13 times, indicating a low ability to service debt. Furthermore, the company has only been able to generate a return on equity of 9.11%, which signifies low profitability per unit of shareholders' funds.
In terms of recent performance, Rudra Global Infra Products had flat results in March 2024, with the highest interest expense of Rs 4.70 crore. However, the stock is currently in a bullish range and has shown improvement in technical trends since June 14, 2024, generating a return of 9.91% since then. Multiple factors, such as MACD, Bollinger Band, and KST, also indicate a bullish trend for the stock.

With a ROCE of 14.6, the stock is currently fairly valued with a 2.5 enterprise value to capital employed. It is also trading at a discount compared to its average historical valuations. However, despite generating a return of 129.40% in the past year, the company's profits have only risen by 43.9%, resulting in a PEG ratio of 0.5.

The majority shareholders of Rudra Global Infra Products are the promoters, and the company has consistently outperformed BSE 500 in the last 3 annual periods, along with generating a return of 129.40% in the past year. While the stock may have potential for growth, current market conditions and the company's financial performance suggest a 'Sell' rating. Investors should carefully consider these factors before making any investment decisions.