Saboo Sodium Chloro Receives 'Sell' Rating from MarketsMOJO, Weak Fundamentals and Expensive Valuation Cited

Saboo Sodium Chloro, a microcap company in the FMCG industry, has recently received a 'Sell' rating from MarketsMOJO on October 18, 2024. This downgrade is based on several factors that indicate a weak long-term fundamental strength for the company.
One of the main reasons for the 'Sell' rating is the company's low ability to service debt, with a high Debt to EBITDA ratio of 6.59 times. Additionally, Saboo Sodium Chloro has only seen a 13.42% CAGR growth in operating profits over the last 5 years, which is considered weak in the FMCG industry.

Furthermore, the company's profitability per unit of shareholders' funds is also low, with a Return on Equity (avg) of 0.71%. This is reflected in the company's expensive valuation, with a Price to Book Value of 2.4 and a PEG ratio of 0.1.

On a positive note, Saboo Sodium Chloro has shown some growth in its recent financial results, with a 11471.4% increase in PBT LESS OI(Q) and a 23.82% increase in NET SALES(9M). However, these numbers are not enough to outweigh the overall weak fundamentals of the company.

From a technical standpoint, the stock is currently in a mildly bullish range, with both the MACD and KST technical factors showing a bullish trend. Additionally, the promoter holding has increased this quarter and now holds 47.4% of the company, which could potentially lead to some positive developments in the future.

Overall, Saboo Sodium Chloro's recent downgrade to a 'Sell' rating highlights the company's weak long-term fundamentals and expensive valuation. Investors should carefully consider these factors before making any investment decisions.