Zodiac Energy Receives 'Sell' Rating from MarketsMOJO, Promoters Decrease Stake

Zodiac Energy, a microcap company in the engineering industry, has recently received a 'Sell' rating from MarketsMOJO. This downgrade is due to several factors that have affected the stock's performance.
Firstly, the technical trend of the stock has deteriorated from Mildly Bullish to Mildly Bearish since November 18, 2024. This has resulted in a negative return of -4.05% since then. Additionally, the MACD and Bollinger Band technical factors are also showing a Bearish trend.

Moreover, the company's ROCE (Return on Capital Employed) is at 8.9, which indicates an expensive valuation with an Enterprise value to Capital Employed ratio of 10.2. However, the stock is currently trading at a discount compared to its average historical valuations.

Furthermore, the promoters of Zodiac Energy have decreased their stake in the company by -0.62% over the previous quarter, currently holding 70.01% of the company. This decrease in stake may suggest a lack of confidence in the future of the business.

On a positive note, the company has shown healthy long-term growth with an annual rate of 49.63% in Operating profit. In September 2024, Zodiac Energy declared very positive results with a growth in Net Profit of 68.24%. The company has also consistently declared positive results for the last 6 quarters.

In terms of market performance, Zodiac Energy has outperformed the market (BSE 500) with a return of 220.44% in the last year, compared to the market's return of 23.90%.

In conclusion, while Zodiac Energy has shown strong growth and positive results, the recent downgrade to 'Sell' by MarketsMOJO and the decrease in promoter confidence may be cause for concern for potential investors. It is important to carefully consider all factors before making any investment decisions.