Chandni Machines Receives 'Sell' Rating from MarketsMOJO Due to Weak Fundamentals

Chandni Machines, a microcap company in the retailing industry, has recently received a 'Sell' rating from MarketsMOJO on November 13, 2024. This downgrade is based on the company's weak long-term fundamental strength, as it has been operating at a loss and has shown poor growth in operating profit over the last 5 years.
In the latest quarter, the company's net sales and PBDIT were at their lowest, with an operating profit to net sales ratio of -1.14%. Additionally, Chandni Machines has a weak ability to service its debt, with a poor EBIT to interest ratio of 0.22.

On a positive note, the stock is currently in a mildly bullish range and its MACD and KST technical factors are also bullish. With a return on equity of 17.4, the stock is trading at an attractive valuation with a price to book value of 2.2. However, it is currently trading at a fair value compared to its historical valuations.

Over the past year, Chandni Machines has generated a return of 139.93%, but its profits have only increased by 25%. This results in a PEG ratio of 0.5, indicating that the stock may be overvalued. The majority of shareholders in the company are non-institutional investors.

Despite consistent returns over the last 3 years and outperforming the BSE 500 index, the recent downgrade by MarketsMOJO suggests caution for potential investors in Chandni Machines. With a weak long-term outlook and poor financial performance, it may be wise to avoid this microcap stock for now.