Shri Venkatesh Refineries Downgraded to 'Sell' by MarketsMOJO on July 2, 2024

Shri Venkatesh Refineries, a microcap company in the refined oil and vanaspati industry, has recently been downgraded to a 'Sell' by MarketsMOJO on July 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 -8.15% annual growth rate in net sales 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.

Other technical factors also suggest a bearish outlook for the stock. While it is currently in a mildly bullish range, the MACD and Bollinger Band indicators are both showing a bearish trend.

However, the company does have a fair valuation with a ROCE of 14 and an enterprise value to capital employed ratio of 2.1. It is also currently trading at a discount compared to its historical valuations. Despite this, the company's profits have fallen by -30.3% in the past year, while the stock has generated a return of 73.54%.

Despite the recent downgrade, Shri Venkatesh Refineries has shown market-beating performance with a return of 73.54% in the last year, significantly higher than the market (BSE 500) returns of 37.36%. Investors should carefully consider these factors before making any decisions regarding this microcap company in the refined oil and vanaspati industry.