Universal Starch Chem Allied Downgraded to 'Sell' by MarketsMOJO Due to Weak Fundamentals

Universal Starch Chem Allied, a microcap company in the chemical industry, has recently been downgraded to a 'Sell' by MarketsMOJO on November 11, 2024. This decision was based on the company's weak long-term fundamental strength, as evidenced by its operating losses and poor ability to service its debt with a low EBIT to Interest ratio.
In addition, the company's financial results for the quarter ending September 24 have been negative, with a significant decrease in profits and net sales. This has also led to the stock underperforming the market in the last year, with a return of only 8.18% compared to the market's 30.30% return.

While there are some bullish technical indicators for the stock, such as MACD, KST, and DOW, it is important to note that the stock is trading at a discount compared to its historical valuations. Furthermore, despite its attractive valuation with a ROCE of 3.1 and a low enterprise value to capital employed ratio of 1.1, the company's profits have fallen by -135.7% in the past year.

It is also worth mentioning that the majority shareholders of Universal Starch Chem Allied are its promoters. As a microcap company, it is important for investors to carefully consider all factors before making any investment decisions. With the recent downgrade to 'Sell' by MarketsMOJO, it is advisable to approach this stock with caution.