Safari Industries (India) Downgraded to 'Sell' by MarketsMOJO, Underperforms Market in Last Year

Safari Industries (India) has recently been downgraded to a 'Sell' by MarketsMOJO due to its flat results in June 2024. The company's operating profit to net sales ratio was at its lowest at 14.64%, and its PBT less OI (Q) has fallen by -8.8%. This has resulted in a ROE of 21.3, making the stock very expensive with a 13 price to book value.
Despite the stock trading at a discount compared to its average historical valuations, it has underperformed the market in the last year with a return of only 2.67%. In contrast, the company's profits have risen by 14.7%, resulting in a PEG ratio of 5.6.

However, there are some positive factors to consider. Safari Industries (India) has a high management efficiency with a ROCE of 15.09% and a strong ability to service debt with a low debt to EBITDA ratio of 0.46 times. Additionally, the company has shown healthy long-term growth with its operating profit growing at an annual rate of 120.37%.

On a technical level, the stock's trend is currently sideways, indicating no clear price momentum. The technical trend has also deteriorated from mildly bullish on 29-Oct-24, generating only 0.48% returns since then.

It is worth noting that Safari Industries (India) has a high institutional holding of 35.14%. These investors have better capability and resources to analyze the fundamentals of companies compared to most retail investors. Their stake in the company has also increased by 0.63% over the previous quarter.

In conclusion, while Safari Industries (India) has some positive aspects such as high management efficiency and strong long-term growth, its recent downgrade to a 'Sell' by MarketsMOJO and underperformance in the market may be cause for concern. Investors should carefully consider all factors before making any decisions regarding this midcap plastic products company.