Confidence Petroleum India Downgraded to 'Sell' by MarketsMOJO After Negative Results

Confidence Petroleum India, a smallcap company in the industrial gases and fuels industry, has recently been downgraded to a 'Sell' by MarketsMOJO on April 9, 2024. This decision was based on the company's negative results in December 2023, after four consecutive quarters of positive performance. The company's interest has also grown at a high rate of 195.44%, but its net sales for the quarter were the lowest at Rs 554.29 crore. Additionally, the PBT less OI for the quarter was also at its lowest at Rs 22.81 crore.
One of the positive factors for the company is its low debt to equity ratio, which is at an average of 0.07 times. This indicates a healthy financial position for the company. Furthermore, Confidence Petroleum India has shown a steady long-term growth with an annual growth rate of 24.86% in net sales.

Technically, the stock is currently in a mildly bullish range, with multiple factors such as MACD, Bollinger Band, and KST indicating a bullish trend. However, with a ROCE of 15.3, the stock is fairly valued with a 2.4 enterprise value to capital employed. It is also trading at a discount compared to its average historical valuations.

In the past year, the stock has generated a return of 47.04%, while its profits have increased by 46.8%. This gives the company a PEG ratio of 0.5, which is considered to be undervalued. However, considering the recent downgrade and the company's negative results, it may be wise for investors to approach this stock with caution.