Steel Strips Infrastructures Downgraded to 'Sell' by MarketsMOJO

Steel Strips Infrastructures, a microcap real estate company, has recently been downgraded to a 'Sell' by MarketsMOJO on January 2, 2024. This decision was based on the company's weak long-term fundamental strength, as it has been operating at a loss. Additionally, the company's ability to service its debt is also weak, with a poor EBIT to Interest ratio of -1.26.
Furthermore, Steel Strips Infrastructures has reported losses and negative ROCE, making it a risky stock to invest in. In fact, the stock is currently trading at a higher risk compared to its average historical valuations. While the stock has generated a return of 7.72% in the past year, its profits have only risen by 733.4%.

Moreover, the stock has underperformed the market in the last year, with a return of 7.72% compared to the market's return of 24.19%. However, the company has shown positive results in the last two consecutive quarters, with a growth in net sales of 18.52%. In fact, its ROCE (HY) is at its highest at 40.35%, and its debtors turnover ratio (HY) is also at its highest at 6.71 times. Additionally, its PBT less OI (Q) is at its highest at Rs 24.30 crore.

From a technical standpoint, the stock is currently in a mildly bullish range, with its MACD and KST technical factors also showing a bullish trend. It is worth noting that the majority shareholders of Steel Strips Infrastructures are promoters, which may also impact the company's performance.

In conclusion, while Steel Strips Infrastructures may have shown positive results in the last two quarters, its overall weak fundamental strength and risky stock performance make it a 'Sell' according to MarketsMOJO. Investors should carefully consider these factors before making any investment decisions.