Shree Hari Chemicals Export Downgraded to 'Sell' by MarketsMOJO, Weak Fundamentals Raise Concerns

Shree Hari Chemicals Export, a microcap company in the chemicals industry, has recently been downgraded to a 'Sell' by MarketsMOJO on July 9, 2024. This decision was based on weak long-term fundamental strength, with a -31.90% CAGR growth in operating profits over the last 5 years. Additionally, the company's ability to service its debt is weak, with a poor EBIT to Interest (avg) ratio of -4.59. This signifies a low profitability per unit of shareholders' funds.
Technically, the stock is currently in a mildly bearish range. The technical trend has deteriorated from mildly bullish on July 9, 2024, and has generated -2.64% returns since then. Multiple factors, such as MACD, Bollinger Band, and KST, are also bearish for the stock.

However, the company has declared positive results for the last 5 consecutive quarters, with a 27.79% growth in net sales (9M) and a higher PAT (HY) of Rs 1.32 cr. It also has an attractive valuation with a ROCE of 2.6 and an enterprise value to capital employed ratio of 1.3. The stock is currently trading at a discount compared to its average historical valuations.

In the past year, the stock has generated a return of 61.93%, outperforming the market (BSE 500) returns of 38.60%. This shows a market-beating performance by the company. The majority shareholders of Shree Hari Chemicals Export are non-institutional investors.

Overall, while the stock may have shown strong performance in the past year, the recent downgrade by MarketsMOJO and weak fundamental strength suggest a cautious approach for potential investors. It is important to carefully consider all factors before making any investment decisions.