Jainex Aamcol Receives 'Sell' Rating from MarketsMOJO, Concerns Over Long-Term Fundamentals and Debt Servicing.

Jainex Aamcol, a microcap engineering company, has recently received a 'Sell' rating from MarketsMOJO. This downgrade is based on the company's weak long-term fundamental strength, with a 14.66% CAGR growth in operating profits over the last 5 years. Additionally, the company's ability to service its debt is also a concern, with a poor EBIT to Interest (avg) ratio of 1.36.
The company's recent results for June 2024 have been flat, with its ROCE (HY) at its lowest at 10.71% and its DEBTORS TURNOVER RATIO (HY) also at its lowest at 3.73 times. However, the stock is currently in a bullish range and has shown improvement in its technical trend since August 28, 2024, generating a return of 26.05% since then. Multiple factors, such as MACD, Bollinger Band, and KST, are also bullish for the stock.

Despite its fair valuation with a 3.4 Enterprise value to Capital Employed and trading at a discount compared to its average historical valuations, the stock has only seen a 10% rise in profits over the past year, while generating a return of 32.75%. The PEG ratio of the company stands at 2.7.

It is worth noting that the majority shareholders of Jainex Aamcol are its promoters. This information, along with the recent downgrade by MarketsMOJO, may be important for investors to consider before making any decisions regarding this microcap engineering company.