Kesar Enterprises Downgraded to 'Sell' by MarketsMOJO Due to High Debt and Poor Growth

Kesar Enterprises, a microcap company in the sugar industry, has recently been downgraded to a 'Sell' by MarketsMOJO. This decision was based on several factors, including the company's high debt to EBITDA ratio of 3.95 times, indicating a low ability to service debt. Additionally, the company's Return on Capital Employed (avg) of 6.42% suggests low profitability per unit of total capital.
Furthermore, Kesar Enterprises has shown poor long-term growth with a decline in net sales and operating profit over the last 5 years. In the most recent quarter, the company's net sales have fallen by -47.7%, PBT LESS OI by -731.1%, and PAT by -181.9%. This is a concerning trend for investors.

The stock is also considered risky due to its negative operating profits and trading at a higher valuation compared to its historical average. However, the company does have a high management efficiency with a ROE of 23.00%.

On a positive note, Kesar Enterprises has shown a market-beating performance with a return of 85.64% in the last year, outperforming the BSE 500 index's return of 33.83%. The stock is also technically in a mildly bullish range, with its MACD and KST technical factors also being bullish.

It is worth noting that the majority shareholders of Kesar Enterprises are promoters, which could potentially impact the company's decision-making and direction. Overall, while the stock has shown strong short-term performance, its long-term growth and financial stability raise concerns for investors.