Super Crop Safe downgraded to 'Sell' by MarketsMOJO due to weak fundamentals and debt concerns

Super Crop Safe, a microcap company in the pesticides and agrochem industry, has recently been downgraded to a 'Sell' by MarketsMOJO on 2024-03-05. This decision was based on the company's weak long-term fundamental strength, with a -16.62% 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 0.63.
Despite declaring positive results for the last 4 consecutive quarters, Super Crop Safe's profitability per unit of shareholders' funds is low, with a Return on Equity (avg) of 5.93%. However, the company has shown growth in its net sales, which have grown at 52.78% in the last half-year, and its PAT (9M) is also higher at Rs 1.26 Cr.

Technically, the stock is in a mildly bullish range, with its MACD and KST technical factors also showing a bullish trend. With a ROCE of 8.2, the stock is fairly valued, with a 2 Enterprise value to Capital Employed. It is also currently trading at a discount compared to its average historical valuations. However, despite generating a return of 185.62% in the last year, the company's profits have only risen by 173%, resulting in a low PEG ratio of 0.2.

Super Crop Safe's majority shareholders are non-institutional investors, and the company has shown market-beating performance in both the long-term and near-term. In the last 3 years, 1 year, and 3 months, the stock has outperformed the BSE 500 index. While the company's stock has shown strong returns, its fundamental strength and profitability remain a concern, leading to the 'Sell' rating from MarketsMOJO.