Beryl Drugs Downgraded to 'Sell' by MarketsMOJO, But Still Shows Potential

Beryl Drugs, a microcap pharmaceutical company, has recently been downgraded to a 'Sell' by MarketsMOJO on May 21, 2024. This decision was based on several factors, including weak long-term fundamental strength with an average Return on Capital Employed (ROCE) of 5.27%, poor long-term growth with net sales growing at an annual rate of 14.92% and operating profit at 0.44% over the last 5 years, and a high debt to EBITDA ratio of 3.04 times, indicating a low ability to service debt.
In addition, the company's recent results for December 2023 showed a decline in net sales of -6.47%. However, there are some bullish factors for the stock, such as being in a mildly bullish range and having multiple bullish indicators like MACD, Bollinger Band, and KST.

Despite its current struggles, Beryl Drugs has an attractive valuation with a ROCE of 14 and a 1.7 Enterprise value to Capital Employed. The stock is also trading at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 159.29%, outperforming the market (BSE 500) returns of 36.54%. Its profits have also risen by 94%, resulting in a PEG ratio of 0.

It is worth noting that the majority of shareholders in Beryl Drugs are non-institutional investors. This could potentially lead to more volatility in the stock price. However, the company has shown market-beating performance in the past year, making it an interesting stock to watch.