Shalby . Downgraded to 'Sell' by MarketsMOJO Due to Poor Long-Term Growth and Negative Results

Shalby ., a smallcap healthcare services company, has recently been downgraded to 'Sell' by MarketsMOJO. This decision was based on the company's poor long-term growth, with net sales and operating profit only growing at an annual rate of 15.13% and 15.97% respectively over the last 5 years.
In addition, the company's recent results in March 2024 have also been negative, with its inventory turnover ratio at a low of 3.97 times and its operating profit to interest ratio at a low of 6.01 times. The debt-equity ratio for the same period was also at its highest at 0.38 times.

Technically, the stock is currently in a mildly bearish range, with its technical trend deteriorating from mildly bullish on 26 June 2024. The key technical factor, MACD, has also been mildly bearish since the same date.

However, the company does have a low debt to equity ratio (average) of 0.02 times and an attractive valuation with a 2.5 enterprise value to capital employed. It is also trading at a fair value compared to its average historical valuations. In the past year, the stock has generated a return of 57.36%, while its profits have risen by 24.2%. The PEG ratio of the company is 1.4.

Institutional investors have also shown an increasing interest in the company, with their stake increasing by 0.51% over the previous quarter. They currently hold 4.62% of the company, and their resources and capabilities allow them to better analyze the fundamentals of companies compared to retail investors.

Despite the recent downgrade, Shalby . has still outperformed the market (BSE 500) with a return of 57.36% in the last year. However, investors should carefully consider the company's poor long-term growth and negative results before making any investment decisions.