W S Industries (India) Downgraded to 'Sell' by MarketsMOJO: A Risky Investment with Concerning Factors.

W S Industries (India) is a microcap company in the electric equipment industry. Recently, the stock has been downgraded to 'Sell' by MarketsMOJO on January 18, 2024. This decision was based on several factors, including weak long-term fundamental strength with an average return on capital employed (ROCE) of 0% and a high debt to EBITDA ratio of -1.00 times, indicating a low ability to service debt.
One of the main reasons for the 'Sell' rating is the company's negative operating profits, making it a risky investment. Additionally, the stock is currently trading at a higher risk compared to its historical valuations. While the stock has seen a significant return of 598.22% in the past year, its profits have only increased by 105%, resulting in a PEG ratio of 1.7.

Another concerning factor is that despite its size, domestic mutual funds hold only 0% of the company. This could indicate that they are not comfortable with the stock's current price or the business itself.

On a positive note, the company has declared very positive results in September 2023, with a growth in operating profit of 147.7%. It has also shown positive results for the last two consecutive quarters, with its ROCE (HY) at its highest at 16.19%, DEBTORS TURNOVER RATIO (HY) at its highest at 2.03 times, and OPERATING PROFIT TO INTEREST (Q) at its highest at 9.74 times.

Technically, the stock is currently in a mildly bullish range, with multiple factors such as MACD, Bollinger Band, and KST indicating a bullish trend. Additionally, W S Industries (India) has consistently outperformed BSE 500 in the last three annual periods, making it a consistent performer.

In conclusion, while W S Industries (India) may have shown strong returns in the past year, its current financial situation and low interest from domestic mutual funds suggest a risky investment. Investors should carefully consider all factors before making any decisions regarding this microcap company in the electric equipment industry.