Beardsell Downgraded to 'Sell' by MarketsMOJO

Beardsell, a microcap company in the chemicals industry, has recently been downgraded to a 'Sell' by MarketsMOJO on 2023-12-20. This decision was based on several factors, including weak long-term fundamental strength with an average Return on Capital Employed (ROCE) of 8.27%, poor long-term growth with only a 4.94% annual growth in Net Sales over the last 5 years, and a weak ability to service its debt with a poor EBIT to Interest (avg) ratio of 1.46.
Additionally, the company's valuation is considered expensive with an Enterprise value to Capital Employed ratio of 2.1 and the stock is currently trading at a discount compared to its historical valuations. However, in the past year, the stock has generated a return of 67.43% and its profits have risen by 143.3%, resulting in a low PEG ratio of 0.1.

Other factors to consider include the company's positive results for the last 11 consecutive quarters, with a significant growth in PAT (HY) at Rs 5.47 crore and the highest operating cash flow (Y) at Rs 15.29 crore. The company also has a strong ROCE (HY) at 18.23%.

Technically, the stock is currently in a mildly bullish range and has shown bullish indicators such as MACD, KST, and OBV. The majority shareholders of Beardsell are the promoters, indicating their confidence in the company's performance.

In the long term, Beardsell has shown market-beating performance, outperforming BSE 500 in the last 3 years, 1 year, and 3 months. However, considering the current factors, MarketsMOJO has downgraded the stock to 'Sell'. Investors are advised to carefully evaluate the company's financials and market performance before making any investment decisions.