Mallcom (India) Downgraded to 'Sell' by MarketsMOJO Due to Poor Growth and Flat Results

Mallcom (India) has recently been downgraded to a 'Sell' by MarketsMOJO due to poor long-term growth and flat results in September 2024. The company's net sales have only grown by an annual rate of 7.66% and operating profit at 18.13% over the last 5 years. In addition, the company's ROCE (HY) and DPR (Y) are at their lowest levels, and the DEBTORS TURNOVER RATIO (HY) is also at a low of 6.02 times.
Despite these factors, Mallcom (India) has a strong ability to service debt with a low Debt to EBITDA ratio of 0.53 times. However, the stock is currently trading at an expensive valuation with a 3 Enterprise value to Capital Employed. It is also worth noting that while the stock has generated a return of 39.68% in the past year, its profits have actually fallen by -1.8%.

One interesting aspect to consider is that despite its small size, domestic mutual funds hold only 0% of the company. This could indicate that they are not comfortable with the current price or the business itself. On the other hand, Mallcom (India) has a track record of market-beating performance in the long term as well as the near term. It has outperformed the BSE 500 in the last 3 years, 1 year, and 3 months.

In terms of technical trends, the stock is currently trading sideways with no clear price momentum. The technical trend has also deteriorated from Mildly Bullish on 18-Nov-24 and has generated -2.2% returns since then. Overall, while Mallcom (India) may have some strengths, the recent downgrade to 'Sell' by MarketsMOJO suggests that investors should approach with caution.