T & I Global downgraded to 'Sell' by MarketsMOJO due to poor long-term growth

T & I Global, a microcap company in the tea/coffee industry, has recently been downgraded to a 'Sell' by MarketsMOJO on April 25, 2024. This decision was based on poor long-term growth, with net sales and operating profit only growing at an annual rate of 9.98% and 11.13% respectively over the last 5 years.

In addition, the company's results for December 2023 were flat, with the lowest net sales and operating profit in the last quarter. The operating profit to net sales ratio was also at its lowest at 1.94%. These factors have contributed to the stock being in a mildly bearish range, with the technical trend deteriorating from mildly bullish on April 25, 2024. The key technical factor, KST, has been bearish since the same date.

Another factor to consider is the company's low debt to equity ratio, averaging at 0.02 times. This, coupled with a return on equity of 14.2, makes the company's valuation attractive with a price to book value of 1.7. The stock is currently trading at a discount compared to its average historical valuations.

Despite the recent downgrade, T & I Global has shown market-beating performance with a return of 131.78% in the last year, significantly higher than the market (BSE 500) returns of 38.43%. However, it is worth noting that while the stock has generated high returns, its profits have only risen by 66.2%, resulting in a PEG ratio of 0.2.

It is also important to mention that the majority shareholders of T & I Global are the promoters of the company. This could potentially impact the decision-making and direction of the company.

In conclusion, while T & I Global has shown strong market-beating performance, the recent downgrade and poor long-term growth may be cause for concern. Investors should carefully consider all factors before making any decisions regarding this stock.