KIC Metaliks Receives 'Sell' Rating from MarketsMOJO

KIC Metaliks, a microcap company in the trading industry, has recently received a 'Sell' rating from MarketsMOJO on October 23, 2023. This downgrade is based on the company's weak long-term fundamental strength, with a -6.72% CAGR growth in operating profits over the last 5 years. Additionally, the company has a high debt to EBITDA ratio of 3.38 times, indicating a low ability to service debt.
In the latest quarter, KIC Metaliks reported negative results, with a -71.16% growth in PAT (HY) and the lowest operating profit to interest ratio of 2.66 times. The net sales for the quarter were also at its lowest at Rs 198.82 crore.

Other factors contributing to the 'Sell' rating include the stock being in a mildly bullish range and its MACD and KST technical factors also being bullish. However, with a ROCE of 16.7, the stock has a very attractive valuation with a 1.1 enterprise value to capital employed. It is also currently trading at a discount compared to its average historical valuations.

Despite generating a return of 16.75% in the past year, the company's profits have fallen by -54.4%. The majority shareholders of KIC Metaliks are the promoters, indicating their confidence in the company's future prospects.

Overall, the downgrade to 'Sell' by MarketsMOJO highlights the company's weak financial performance and high debt levels. Investors should carefully consider these factors before making any investment decisions.