Integra Engineering India Downgraded to 'Sell' by MarketsMOJO on May 28, 2024

Integra Engineering India, a microcap company in the textile machinery industry, has recently been downgraded to a 'Sell' by MarketsMOJO on May 28, 2024. This decision was based on several factors, including flat results in December 2023 and a decrease in profits by -35.88%. The technical trend of the stock has also shifted from mildly bullish to mildly bearish, with a -2.8% return since May 28, 2024. Additionally, the Bollinger Band, a key technical indicator, has been bearish since the same date.
One of the main reasons for the downgrade is the company's expensive valuation, with a ROCE of 28.6 and an enterprise value to capital employed ratio of 11.1. However, the stock is currently trading at a discount compared to its average historical valuations. While the stock has generated a return of 45.99% in the past year, its profits have only increased by 6.3%, resulting in a high PEG ratio of 8.5.

Another concerning factor is the low stake held by domestic mutual funds in the company, at only 0.53%. This could indicate that they are not comfortable with the current price or the business itself. However, the company does have a strong ability to service debt, with a low debt to EBITDA ratio of 0 times.

Despite the downgrade, Integra Engineering India has consistently generated strong returns over the last 3 years, outperforming the BSE 500 index in each of the last 3 annual periods. However, investors should carefully consider all factors before making any investment decisions.