Shukra Pharmaceuticals Receives 'Sell' Rating from MarketsMOJO Due to Poor Performance and High Debt.

Shukra Pharmaceuticals, a microcap pharmaceutical company, has recently received a 'Sell' rating from MarketsMOJO on September 23, 2024. This downgrade is based on several factors that indicate a poor performance and potential risks for investors.
One of the main reasons for the 'Sell' rating is the company's poor management efficiency, with a low Return on Equity (ROE) of 5.21%. This signifies a low profitability per unit of shareholders' funds. Additionally, the company has a high Debt to EBITDA ratio of 3.38 times, indicating a low ability to service debt.

In terms of financial performance, Shukra Pharmaceuticals has shown flat results in June 2024, with a significant decline in net sales and profits. The net sales for the half-year period have decreased by 78.83%, while the profits have fallen by 89.4%. The earnings per share (EPS) for the quarter are also at a low of Rs 0.11.

From a technical standpoint, the stock is currently in a Mildly Bearish range, with a deteriorating trend since September 23, 2024. The MACD and KST technical factors are also bearish, indicating a potential downward trend in the stock's price.

Moreover, the stock is currently trading at a very expensive valuation, with a price to book value of 4.8. This is significantly higher than its average historical valuations. Although the stock has generated a return of 48.16% in the past year, its profits have only risen by 312.6%.

On a positive note, Shukra Pharmaceuticals has shown healthy long-term growth, with an annual growth rate of 59.15% in net sales and 49.31% in operating profit. However, the majority shareholders of the company are promoters, which may raise concerns about potential conflicts of interest.

In conclusion, Shukra Pharmaceuticals' recent 'Sell' rating by MarketsMOJO is based on its poor financial performance, high debt, and expensive valuation. While the company has shown long-term growth, the majority shareholders being promoters may raise concerns for investors.