TGV Sraac Downgraded to 'Sell' by MarketsMOJO Due to Negative Financial Results

TGV Sraac, a microcap company in the chemicals industry, has recently been downgraded to a 'Sell' by MarketsMOJO on October 4th, 2024. This downgrade is due to the company's negative financial results for the past 6 consecutive quarters. The company's profits have seen a significant decline of -85.23% and its net sales have also decreased by -20.88%.
Despite being a microcap company, TGV Sraac has not attracted much interest from domestic mutual funds, with only 0.05% of the company's shares being held by them. This could be a sign that either the mutual funds are not comfortable with the company's current price or they have concerns about its business.

In terms of performance, TGV Sraac has underperformed the BSE 500 index in the last 1 year, 3 years, and 3 months, with a return of -18.23%. The technical trend for the stock is currently sideways, indicating no clear price momentum. This is a significant change from the mildly bullish trend it had on October 4th, 2024, resulting in a -2.35% return since then.

On a positive note, the company has shown healthy long-term growth with an annual rate of 32.04% in operating profit. However, its return on capital employed (ROCE) is at 15.2, which is considered very attractive. Additionally, the stock is currently trading at a discount compared to its historical valuations.

It is important to note that while the stock has generated a negative return of -18.23% in the past year, its profits have also fallen by -89%. This could be a cause for concern for potential investors.

In conclusion, TGV Sraac's recent downgrade to 'Sell' by MarketsMOJO is based on its negative financial results and underperformance in the stock market. While the company has shown healthy long-term growth and has attractive valuations, its recent decline in profits may be a red flag for investors.