Unison Metals Downgraded to 'Sell' by MarketsMOJO: Weak Fundamentals and Underperformance

Unison Metals, a microcap company in the steel/sponge iron/pig iron industry, has recently been downgraded to a 'Sell' by MarketsMOJO on October 22, 2024. This decision was based on several factors, including weak long-term fundamental strength, poor growth in net sales and operating profit over the last 5 years, and a high debt to EBITDA ratio.
In addition, the stock has underperformed the market in the last year, with a return of only 5.46% compared to the market's 31.91%. However, there have been some positive results for the company in June 2024, with a significant growth in PAT and net sales.

The technical trend for Unison Metals is currently sideways, indicating no clear price momentum. This is a change from the previous mildly bullish trend and has resulted in a -1.97% return since October 22, 2024.

Despite these factors, the company has a very attractive valuation with a ROCE of 13.4 and an enterprise value to capital employed ratio of 1.1. It is also trading at a discount compared to its historical valuations. In the past year, while the stock has only generated a 5.46% return, its profits have increased by 202%, resulting in a PEG ratio of 0.

It is worth noting that the majority shareholders of Unison Metals are the promoters of the company. This information may be important for investors to consider when making decisions about the stock.

Overall, based on the current information and analysis, MarketsMOJO has downgraded the stock call on Unison Metals to 'Sell'. Investors should carefully consider these factors before making any decisions regarding this microcap company in the steel industry.