Konndor Industries Receives 'Sell' Rating from MarketsMOJO Due to Weak Fundamentals

Konndor Industries, a microcap trading company, has recently received a 'Sell' rating from MarketsMOJO on July 11, 2024. This downgrade is based on the company's weak long-term fundamental strength, with an average Return on Equity (ROE) of 2.46%. Additionally, the company has shown poor long-term growth, with a -28.69% annual growth rate in Net Sales and only 8.30% growth in Operating profit over the last 5 years.
One of the major concerns for Konndor Industries is its ability to service its debt, as indicated by a low EBIT to Interest (avg) ratio of 0.28. In the latest quarter, the company's results were flat, with PBDIT(Q) at its lowest at Rs 0.01 cr, PBT LESS OI(Q) at Rs 0.01 cr, and EPS(Q) at Rs 0.02.

Apart from these factors, the stock is currently in a Mildly Bullish range and has multiple bullish indicators such as MACD, KST, and OBV. However, with an ROE of 8.1, the stock is currently trading at an attractive valuation with a 0.6 Price to Book Value. It is also worth noting that the stock is currently trading at a premium compared to its average historical valuations.

In the past year, Konndor Industries has generated a return of 38.83%, while its profits have risen by 48%. However, the PEG ratio of the company is 0, indicating that the stock may be overvalued. It is also worth mentioning that the majority of the company's shareholders are non-institutional investors.

Overall, the downgrade to 'Sell' by MarketsMOJO highlights the weak performance and financial health of Konndor Industries. Investors should carefully consider these factors before making any investment decisions.