SKM Egg Products Export (India) Downgraded to 'Sell' After Negative Financial Results

SKM Egg Products Export (India) has recently been downgraded to a 'Sell' by MarketsMOJO, a leading financial analysis platform. This downgrade comes after the company reported very negative results in the June 2024 quarter, with a fall in EPS of -43.39%. This is the third consecutive quarter of negative results for the company, and in December 2023, they reported negative results after six consecutive negative quarters.
The company's financials have also taken a hit, with PBT LESS OI(Q) falling by -56.6% and PAT(Q) falling by -43.4%. Additionally, their NET SALES(Q) have reached a low of Rs 117.84 crore. These factors have contributed to the stock being in a mildly bearish range, with the technical trend deteriorating from sideways on 02-Sep-24. Multiple technical indicators, such as MACD, Bollinger Band, and KST, also suggest a mildly bearish outlook for the stock.

Institutional investors, who have better resources and capabilities to analyze company fundamentals, have decreased their stake in SKM Egg Products Export (India) by -1.43% in the previous quarter. They now collectively hold only 0.77% of the company. This decrease in institutional participation is another red flag for the stock.

Furthermore, the stock has significantly underperformed the market (BSE 500) in the last year, generating negative returns of -45.71% while the market has generated returns of 38.49%. However, the company does have some positive factors, such as a healthy long-term growth rate of 159.16% in operating profit and a very attractive valuation with a ROE of 30.8 and a price to book value of 2.6.

Overall, with the recent downgrade and negative financial results, it may be wise for investors to approach SKM Egg Products Export (India) with caution. While there are some positive factors, the stock has underperformed the market and has a bearish outlook, making it a 'Sell' according to MarketsMOJO.