Veto Switchgears & Cables Downgraded to 'Sell' by MarketsMOJO Due to Poor Long-Term Growth

Veto Switchgears & Cables, a microcap company in the cable industry, has recently been downgraded to a 'Sell' by MarketsMOJO on November 27, 2024. This decision was based on the company's poor long-term growth, with an annual rate of -5.20% in operating profit over the last 5 years. Additionally, the company's results for September 24 showed flat performance, with its cash and cash equivalents at a low of Rs 2.20 crore.
Technically, the stock is currently in a Mildly Bearish range, with a deteriorating trend since November 27, 2024, resulting in a 5.44% return. The MACD and KST technical factors also indicate a Bearish trend for the stock.

However, there are some positive factors to consider. Veto Switchgears & Cables has a strong ability to service debt, with a low Debt to EBITDA ratio of 0.90 times. Its ROE of 6.9 also makes it a Very Attractive valuation with a 1.1 Price to Book Value. Furthermore, the stock is currently trading at a discount compared to its average historical valuations.

In the past year, the stock has generated a return of 22.93%, while its profits have only risen by 0.9%. This results in a PEG ratio of 15.6 for the company. It is worth noting that the majority of shareholders for Veto Switchgears & Cables are non-institutional investors.

Overall, while the company may have some positive aspects, the recent downgrade to 'Sell' by MarketsMOJO and its poor long-term growth may be cause for concern for potential investors. It is important to carefully consider all factors before making any investment decisions.