Savita Oil Technologies Downgraded to 'Sell' by MarketsMOJO Due to Poor Long-Term Growth

Savita Oil Technologies, a smallcap company in the lubricants industry, has recently been downgraded to a 'Sell' by MarketsMOJO on October 16, 2024. This decision was based on the company's poor long-term growth, with an annual operating profit growth rate of -24.74% over the last 5 years.
In addition, the company's results in June 2024 showed a decline in profit before tax (PBT) and a negative growth in non-operating income. However, Savita Oil Technologies has a high management efficiency with a ROE of 16.22% and a low debt to equity ratio of 0 times.

Technically, the stock is currently in a mildly bullish range with its MACD and KST technical factors also showing a bullish trend. With a ROE of 12.4, the stock is fairly valued with a price to book value of 2.4. However, it is currently trading at a premium compared to its historical valuations.

Despite generating a return of 66.37% in the past year, the company's profits have fallen by -2.9%. Majority of the company's shares are held by promoters, indicating their confidence in the company's performance.

Overall, Savita Oil Technologies has shown a market-beating performance with a return of 66.37% in the last year, outperforming the BSE 500 index which only generated a return of 35.33%. However, considering the company's recent downgrade and its declining profits, investors may want to approach this stock with caution.