Shri Venkatesh Refineries Downgraded to 'Sell' by MarketsMOJO Due to High Debt and Poor Growth

Shri Venkatesh Refineries, a microcap company in the refined oil and vanaspati industry, has recently been downgraded to a 'Sell' by MarketsMOJO on August 2, 2024. This decision was based on several factors, including the company's high debt to EBITDA ratio of 2.65 times, indicating a low ability to service debt. Additionally, the company has shown poor long-term growth with a decline in net sales by an annual rate of -8.15% over the last 5 years.
In December 2023, the company reported negative results with a 41.45% increase in interest expenses and a -15.9% decrease in net sales. These factors have contributed to the downgrade of the stock.

On a technical level, the stock is currently in a Mildly Bullish range and the MACD has been Bullish since August 2, 2024. However, with a ROCE of 14, the stock is fairly valued with a 2 Enterprise value to Capital Employed. It is also trading at a discount compared to its average historical valuations.

Despite generating a return of 91.11% in the last year, the company's profits have fallen by -30.3%. This performance has still outperformed the market (BSE 500) returns of 37.36%.

In conclusion, Shri Venkatesh Refineries may not be a favorable investment option at this time due to its high debt and poor long-term growth. Investors should carefully consider these factors before making any decisions.