GP Petroleums Receives 'Sell' Rating from MarketsMOJO, Despite Bullish Factors and Promoter Confidence

GP Petroleums, a microcap company in the lubricants industry, has recently received a 'Sell' rating from MarketsMOJO on April 15, 2024. This downgrade is based on weak long-term fundamental strength, with an average Return on Capital Employed (ROCE) of 9.18%. Additionally, the company has shown poor long-term growth, with net sales growing at an annual rate of only 1.13% and operating profit at 0.92% over the last 5 years.
In the latest quarter, GP Petroleums reported flat results with net sales at its lowest at Rs 154.96 crore. 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.

The stock also has an attractive valuation with a ROCE of 8.9 and an enterprise value to capital employed ratio of 1.2. It is currently trading at a discount compared to its average historical valuations. However, despite generating a return of 92.04% in the past year, the company's profits have fallen by -17.4%.

GP Petroleums' majority shareholders are its promoters, indicating their confidence in the company's future prospects. The stock has also shown market-beating performance in the long term, outperforming BSE 500 in the last 3 years, 1 year, and 3 months. While the company may face some challenges in the short term, its long-term potential remains to be seen.