MarketsMOJO Downgrades Beryl Drugs to 'Sell' Due to Weak Fundamentals and High Debt

Beryl Drugs, a microcap pharmaceutical company, has recently been downgraded to a 'Sell' by MarketsMOJO on November 4th, 2024. This decision was based on several factors, including weak long-term fundamental strength, poor growth in net sales and operating profit, and a high debt to EBITDA ratio.
According to MarketsMOJO, Beryl Drugs has shown a weak average Return on Capital Employed (ROCE) of 5.27% and has experienced a slow growth rate in net sales and operating profit over the last 5 years. Additionally, the company's high debt to EBITDA ratio of 3.04 times indicates a low ability to service debt.

In terms of recent performance, Beryl Drugs reported flat results in June 2024 with a decline of -23.60% in net sales compared to the previous year. However, the stock is currently in a mildly bullish range and its MACD and KST technical factors are also bullish.

On a positive note, Beryl Drugs has a very attractive valuation with a ROCE of 13.8 and an enterprise value to capital employed ratio of 1.7. The stock is also trading at a discount compared to its average historical valuations. However, its profits have fallen by -43.9% in the past year, despite generating a return of 76.75%.

It is worth noting that the majority of Beryl Drugs' shareholders are non-institutional investors. Despite this, the company has shown market-beating performance in the long term as well as the near term. In the last 3 years, 1 year, and 3 months, the stock has outperformed BSE 500, indicating its potential for growth in the future.