Uma Exports Receives 'Sell' Rating from MarketsMOJO Due to Weak Fundamentals and High Debt Levels

Uma Exports, a microcap trading company, has recently received a 'Sell' rating from MarketsMOJO on October 16, 2024. This downgrade is based on weak long-term fundamental strength, with a -29.52% CAGR growth in operating profits over the last 5 years. Additionally, the company has a high debt to EBITDA ratio of 3.93 times, indicating a low ability to service debt. The return on equity (avg) of 9.39% also signifies low profitability per unit of shareholders' funds.
The stock is currently trading at a discount compared to its average historical valuations and has a relatively expensive valuation with a 1.7 enterprise value to capital employed. Despite generating a return of 121.96% in the past year, the company's profits have fallen by -33.5%.

On a positive note, Uma Exports has shown growth in its profits in the last quarter, with PBT LESS OI(Q) at Rs 6.17 crore, growing at 184.0%, and PAT(Q) at Rs 6.48 crore, growing at 147.6%. Technically, the stock is in a mildly bullish range, with multiple factors such as MACD, KST, DOW, and OBV indicating a bullish trend.

Institutional investors have also shown an increasing interest in the company, with a 0.96% increase in their stake over the previous quarter. They collectively hold 0.97% of the company and have better resources and capabilities to analyze the fundamentals of companies compared to retail investors.

Despite the market-beating performance of the stock, with a return of 121.96% in the last year, it is important to consider the weak fundamental strength and high debt levels of Uma Exports before making any investment decisions.