Sri KPR Industries Receives 'Sell' Rating from MarketsMOJO Due to Weak Fundamentals

Sri KPR Industries, a microcap company in the plastic products industry, has recently received a 'Sell' rating from MarketsMOJO on June 5, 2024. This downgrade is based on the company's weak long-term fundamental strength, with a -29.78% CAGR growth in operating profits over the last 5 years. Additionally, the company's ability to service its debt is also a concern, with a poor EBIT to Interest (avg) ratio of 0.02.
Furthermore, Sri KPR Industries has a low profitability per unit of shareholders' funds, with a Return on Equity (avg) of 4.87%. This is reflected in its expensive valuation, with a price to book value of 0.6 and a PEG ratio of 0.1. However, the stock is currently trading at a discount compared to its average historical valuations.

On a positive note, the company has shown promising results in the first half of 2024, with a significant growth in profits and net sales. Its ROCE (Return on Capital Employed) is also at its highest at 8.68%. Technically, the stock is in a mildly bullish range, with its MACD and KST technical factors also showing a bullish trend.

The majority shareholders of Sri KPR Industries are its promoters, indicating their confidence in the company's future prospects. In the long term, the stock has outperformed the BSE 500 index, generating a return of 106.59% in the last year and beating the index in the last 3 years, 1 year, and 3 months. However, considering the current market conditions and the company's weak fundamentals, MarketsMOJO has downgraded the stock to 'Sell'.