Wheels India . Downgraded to 'Sell' by MarketsMOJO Due to Weak Fundamentals and Institutional Investor Decrease

Wheels India ., a smallcap auto ancillary company, has recently been downgraded to 'Sell' by MarketsMOJO. This decision was based on several factors, including weak long-term fundamental strength, poor growth in net sales and operating profit, and a high debt to EBITDA ratio. Additionally, institutional investors have decreased their stake in the company, indicating a lack of confidence in its performance.
Despite declaring positive results for the last three consecutive quarters, Wheels India . has underperformed the market in the last year with a return of only 4.93%. The technical trend for the stock is currently sideways, with no clear price momentum. However, the company does have an attractive valuation with a ROCE of 14.5 and a 1.5 enterprise value to capital employed ratio.

It is important to note that the stock has generated a return of 4.93% in the last year, while its profits have risen by 98.6%. This results in a PEG ratio of 0.2, indicating that the stock is trading at a discount compared to its historical valuations.

While Wheels India . may have potential for growth in the future, it is currently facing challenges in terms of its fundamental strength and debt management. As such, MarketsMOJO has downgraded the stock to 'Sell' and investors should carefully consider these factors before making any investment decisions.