MarketsMOJO Downgrades Elegant Marbles and Grani Industries to 'Sell' Rating

Elegant Marbles and Grani Industries, a microcap trading company, has recently received a 'Sell' rating from MarketsMOJO. This downgrade is based on the company's weak long-term fundamental strength, poor growth, and weak ability to service its debt.
According to MarketsMOJO, Elegant Marbles and Grani Industries has an average Return on Equity (ROE) of 2.41%, indicating weak long-term fundamental strength. The company's Net Sales has only grown by an annual rate of 11.88% over the last 5 years, showing poor long-term growth potential. Additionally, the company's EBIT to Interest (avg) ratio is 0.76, indicating a weak ability to service its debt.

While the company has declared positive results for the last 12 consecutive quarters and has seen a growth of 47.02% in its PAT (HY), its stock is technically in a mildly bullish range. The MACD and KST technical factors are also bullish, but with an ROE of 5.6, the stock is fairly valued with a 0.9 Price to Book Value. However, the stock is currently trading at a premium compared to its average historical valuations.

Despite the stock generating a return of 113.27% in the last year, its profits have only risen by 87.2%, resulting in a PEG ratio of 0.2. This indicates that the stock may be overvalued. Additionally, the majority shareholders of the company are promoters, which may raise concerns about potential conflicts of interest.

In comparison to the market (BSE 500) returns of 31.64%, Elegant Marbles and Grani Industries has outperformed with a return of 113.27% in the last year. However, with the recent downgrade to 'Sell' by MarketsMOJO, investors may want to carefully consider their investment in this microcap trading company.