Sahyadri Industries Receives 'Sell' Rating from MarketsMOJO, Poor Performance and Bearish Trend Indicated

Sahyadri Industries, a microcap company in the construction material industry, has recently received a 'Sell' rating from MarketsMOJO on September 3, 2024. This downgrade is based on several factors that indicate a poor performance and a bearish trend for the company's stock.
One of the main reasons for the 'Sell' rating is the company's poor long-term growth. Over the last 5 years, Sahyadri Industries has only seen a -1.11% annual growth in operating profit. In addition, the company's results for the quarter ending June 24 have been flat, with a -15.66% decrease in PBT LESS OI(Q) and a -17.3% decrease in PAT(Q).

From a technical standpoint, the stock is currently in a bearish range. Since the downgrade on September 3, the stock has generated a -1.54% return and both the MACD and Bollinger Band technical factors are also showing a bearish trend.

Furthermore, Sahyadri Industries has consistently underperformed against the benchmark over the last 3 years. In the past year alone, the stock has generated a -17.18% return and has underperformed the BSE 500 in each of the last 3 annual periods.

On the positive side, the company has a strong ability to service debt with a low Debt to EBITDA ratio of 0.61 times. It also has a very attractive valuation with a ROCE of 9.3 and an Enterprise value to Capital Employed of 1. Additionally, the stock is currently trading at a discount compared to its average historical valuations.

However, despite these positive factors, the stock's profits have fallen by -21.9% in the past year. It is also worth noting that the majority shareholders of Sahyadri Industries are the promoters themselves.

In conclusion, based on the recent downgrade and the various factors mentioned, it may be wise for investors to consider selling their shares in Sahyadri Industries.