Beardsell Downgraded to 'Sell' by MarketsMOJO, Weak Fundamentals and Expensive Valuation Cited

Beardsell, a microcap company in the chemicals industry, has recently been downgraded to a 'Sell' by MarketsMOJO on January 17, 2024. 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. While the stock has generated a return of 82.04% in the past year, its profits have only risen by 143.3%, resulting in a low PEG ratio of 0.1.

On a positive note, Beardsell has declared positive results for the last 11 consecutive quarters, with a significant growth in PAT (HY) at Rs 5.47 crore, which has grown by 118.80%. The company also has the highest operating cash flow (Y) at Rs 15.29 crore and the highest ROCE (HY) at 18.23%.

Technically, the stock is currently in a mildly bullish range, with multiple factors such as MACD, KST, and OBV indicating a bullish trend. The majority shareholders of Beardsell are the promoters, and the company has consistently generated returns over the last 3 years, outperforming the BSE 500 index in each of the last 3 annual periods.

Overall, while Beardsell has shown some positive results in terms of financial performance, the recent downgrade to 'Sell' by MarketsMOJO suggests caution for potential investors. It is important to carefully consider all factors before making any investment decisions.