Surat Trade & Merchantile Downgraded to 'Sell'

Surat Trade & Merchantile, a microcap textile company, has recently been downgraded to a 'Sell' by MarketsMOJO on December 18, 2023. This decision was based on the company's poor long-term growth, with net sales declining by an annual rate of -24.55% and operating profit at -188.22% over the last 5 years.
In addition, the company's recent financial results for September 2023 have been flat, with a significant decrease in profits. The profit after tax has grown at a negative rate of -92.57%, and the non-operating income is 169.14% of the profit before tax. This indicates a risky financial situation for the company, with a negative EBITDA.

Furthermore, Surat Trade & Merchantile has underperformed the market in the last year, with a return of -4.09% compared to the market's 21.63% return. This is a cause for concern for investors, as the company's profits have also fallen by -89.3% in the same period.

Other factors to consider include the company's low debt to equity ratio and its technical indicators, which show a mildly bullish trend. However, it is worth noting that the majority shareholders of Surat Trade & Merchantile are the promoters themselves.

In conclusion, based on the recent downgrade and the company's financial performance, it may be wise for investors to approach Surat Trade & Merchantile with caution.