Southern Petrochemical Industries Corporation Downgraded to 'Sell' by MarketsMOJO on October 22, 2024

Southern Petrochemical Industries Corporation, a smallcap company in the fertilizer industry, has recently been downgraded to a 'Sell' by MarketsMOJO on October 22, 2024. This downgrade is based on the company's flat results in June 2024, with a growth of only 103.37% in interest and a decline of -27.81% in profits for the first nine months of the year. Additionally, the net sales for the company have also decreased by -29.12% in the same period.
Technically, the stock is currently in a Mildly Bearish range, with a deteriorating trend since October 22, 2024, resulting in a -5.18% return. The Bollinger Band, a key technical factor, has also been Bearish since the same date.

Despite being a smallcap company, Southern Petrochemical Industries Corporation has only 0.01% of its shares held by domestic mutual funds. This could indicate that either the mutual funds are not comfortable with the current price of the stock or they have not conducted in-depth research on the company.

In the last year, the stock has underperformed the market, generating a return of only 4.19%, compared to the market's return of 31.91%. However, the company has a strong ability to service debt, with a low Debt to EBITDA ratio of 1.46 times. It also has a healthy long-term growth rate, with an annual growth rate of 20.70% in operating profit.

Furthermore, with a ROCE of 15.7, the company has an attractive valuation, with an Enterprise value to Capital Employed ratio of 1.3. The stock is currently trading at a discount compared to its average historical valuations. However, in the past year, while the stock has generated a return of 4.19%, its profits have declined by -38.3%.

Overall, based on the recent downgrade and the company's performance in the last year, it may be wise for investors to approach Southern Petrochemical Industries Corporation with caution.