Jagran Prakashan downgraded to 'Sell' by MarketsMOJO due to poor growth and lackluster financial results.

Jagran Prakashan, a smallcap company in the printing and publishing industry, has recently been downgraded to a 'Sell' by MarketsMOJO on September 16, 2024. This decision was based on the company's poor long-term growth, with net sales declining by an annual rate of -3.88% and operating profit decreasing by -19.93% over the last 5 years.
In addition, the company's recent financial results for the quarter ending June 24 have been lackluster, with net sales at its lowest at Rs 444.12 crore and a decrease in profit after tax by -7.8%. Non-operating income also only accounted for 40.17% of the company's profit before tax.

Technically, the stock is currently in a mildly bearish range, with a deteriorating trend since September 16, 2024, resulting in -4.22% returns. The MACD and KST technical factors also indicate a mildly bearish trend.

Furthermore, institutional investors have decreased their stake in the company by -1.01% in the previous quarter, holding only 12.65% collectively. This suggests that these investors, who have better resources and capabilities to analyze company fundamentals, have also lost confidence in Jagran Prakashan.

The company's performance has been below par in both the long-term and near-term, with -9.51% returns in the last year and underperformance compared to BSE 500 in the last 3 years, 1 year, and 3 months.

On a positive note, Jagran Prakashan has a low debt to equity ratio and a very attractive valuation with a price to book value of 1.1. However, the stock is currently trading at a premium compared to its historical valuations. While profits have increased by 4.2% in the past year, the stock has generated a return of -9.51%, resulting in a PEG ratio of 2.7. Additionally, the company offers a high dividend yield of 5.3% at its current price.

In conclusion, based on the company's poor long-term growth, recent financial results, technical trend, and decreasing participation by institutional investors, MarketsMOJO has downgraded Jagran Prakashan to a 'Sell'. However, the company's low debt to equity ratio and attractive valuation may still make it an attractive option for some investors.