SML ISUZU Downgraded to 'Sell' by MarketsMOJO Due to High Debt and Poor Growth

SML ISUZU, a smallcap company in the auto-truck industry, has recently been downgraded to a 'Sell' by MarketsMOJO. This is due to several factors, including a high Debt to EBITDA ratio of 4.60 times, indicating a low ability to service debt. Additionally, the company has shown poor long-term growth with only a 10.10% annual growth in Net Sales over the last 5 years.
Furthermore, SML ISUZU has a relatively expensive valuation with a ROCE of 20 and an Enterprise value to Capital Employed ratio of 4.5. However, the stock is currently trading at a discount compared to its historical valuations. Despite this, domestic mutual funds hold only 0% of the company, which could suggest that they are not comfortable with the current price or the business.

On the positive side, SML ISUZU has shown healthy long-term growth with a 38.65% annual growth in Operating profit. The company has also declared positive results for the last 10 consecutive quarters, with PBT LESS OI(Q) growing at 103.69% and PAT(Q) growing at 45.9%. However, the technical trend for the stock is currently sideways, indicating no clear price momentum.

Despite its smallcap size, SML ISUZU has consistently outperformed the BSE 500 index over the last 3 years, generating 38.92% returns in the last 1 year alone. However, the recent downgrade by MarketsMOJO suggests caution for potential investors. It is important to note that this article is based on fact-based information and does not include any external data or sources.