Inani Marbles & Industries Downgraded to 'Sell' by MarketsMOJO, Despite Recent Positive Developments

Inani Marbles & Industries, a microcap company in the mining and minerals industry, has recently been downgraded to a 'Sell' by MarketsMOJO on September 2, 2024. This decision was based on weak long-term fundamental strength, with a -2.91% CAGR growth in operating profits over the last 5 years. Additionally, the company has a high debt to EBITDA ratio of 5.59 times, indicating a low ability to service debt. The return on equity (avg) of 2.52% also suggests low profitability per unit of shareholders' funds.
However, there have been some positive developments for the company, with net sales in the first half of 2024 growing at 20.37% and a higher PAT of Rs 2.03 crore. The stock is currently in a mildly bullish range and its MACD and KST technical factors are also bullish.

In terms of valuation, the company has a fair ROCE of 1.9 and a 1.2 enterprise value to capital employed. The stock is currently trading at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 72.00%, while its profits have risen by 363%. The PEG ratio of the company is 0, indicating a potential undervaluation.

The majority shareholders of Inani Marbles & Industries are the promoters, which could be seen as a positive factor for the company. Despite the recent downgrade, the stock has shown market-beating performance with a return of 72.00% in the last year, compared to the BSE 500 index's return of 38.49%. Investors should carefully consider these factors before making any investment decisions.