Shri Keshav Cements & Infra Downgraded to 'Sell' by MarketsMOJO Due to High Debt and Weak Fundamentals

Shri Keshav Cements & Infra, a microcap company in the cement industry, has recently been downgraded to a 'Sell' by MarketsMOJO on March 4, 2024. This decision was based on the company's high debt and weak long-term fundamental strength. With a debt to equity ratio of 40.53 times, the company's profitability per unit of total capital is low, with a return on capital employed of only 8.70%.
In addition, the company's valuation is considered expensive with an enterprise value to capital employed ratio of 2.4. However, the stock is currently trading at a discount compared to its historical valuations. Despite generating a return of 127.71% in the past year, the company's profits have decreased by -159%.

On a positive note, Shri Keshav Cements & Infra has shown consistent returns over the last 3 years and has outperformed the BSE 500 index. The company also has a high operating profit to interest ratio and a low debt to equity ratio, indicating a strong financial position.

Technically, the stock is in a mildly bullish range and both the MACD and KST technical factors are also bullish. Furthermore, there has been an increase in institutional investor participation, with a 1% increase in stake over the previous quarter. This suggests that these investors, who have better resources and capabilities to analyze company fundamentals, have confidence in the company's potential.

In conclusion, while Shri Keshav Cements & Infra may have some weaknesses in its financials, it has shown consistent returns and has gained the interest of institutional investors. Investors should carefully consider these factors before making any investment decisions.