T & I Global Downgraded to 'Sell' by MarketsMOJO Due to Poor Long-Term Growth and Flat Recent Results

T & I Global, a microcap company in the tea/coffee industry, has recently been downgraded to a 'Sell' by MarketsMOJO on May 6, 2024. This decision was based on the company's 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 recent results for December 2023 have been flat, with the lowest net sales and operating profit in the quarter. This has led to a low operating profit to net sales ratio of 1.94%. On the positive side, T & I Global has a low debt to equity ratio of 0.02 times.

The technical trend for the stock is currently sideways, indicating no clear price momentum. This trend has worsened since May 6, 2024, when it was mildly bullish, and has resulted in a -1.64% return since then. However, with a return on equity of 14.2, the stock is fairly valued with a price to book value of 1.8. It is also currently trading at a discount compared to its historical valuations.

Despite the recent downgrade, T & I Global has shown market-beating performance, with a return of 77.45% in the last year, compared to the market (BSE 500) return of 35.52%. This is a significant increase, especially considering that the company's profits have also risen by 66.2% in the same period, resulting in a low PEG ratio of 0.2.

The majority shareholders of T & I Global are the promoters, indicating their confidence in the company's future prospects. However, based on the current data and performance, MarketsMOJO has recommended a 'Sell' for the stock. Investors should carefully consider these factors before making any investment decisions.