MarketsMOJO downgrades Engineers India to 'Sell' rating due to poor growth and negative results

MarketsMOJO has recently downgraded Engineers India . to a 'Sell' rating, citing poor long-term growth and negative results in the latest quarter. The company's operating profit has seen a decline of -5.41% over the last 5 years, which is a cause for concern for investors.

In the latest quarter, the company's ROCE (HY) has hit a low of 21.03%, while its PAT (Q) has fallen by -17.7% to Rs 91.60 crore. The net sales (Q) have also seen a decline, reaching a low of Rs 623.83 crore. These negative results have contributed to the downgrade of the stock.

Technically, the stock is currently in a Mildly Bearish range, with the technical trend deteriorating from Mildly Bullish on 01-Oct-24. Since then, the stock has generated -1.04% returns. Multiple factors, such as MACD, Bollinger Band, and KST, are also indicating a bearish trend for the stock.

With a ROE of 19.7, the stock is currently trading at an expensive valuation with a 5.2 Price to Book Value. However, it is still trading at a fair value compared to its average historical valuations. In the past year, the stock has generated a return of 42.07%, but its profits have fallen by -5.3%.

On the positive side, the company has shown high management efficiency with a ROE of 15.82%. It also has a low Debt to Equity ratio (avg) of 0 times, indicating a healthy financial position. Additionally, the company has a high institutional holding of 21.18%, which shows that these investors have better capability and resources to analyze the fundamentals of the company. Their stake has also increased by 0.57% over the previous quarter.

In conclusion, while Engineers India . may have some positive aspects, the recent downgrade by MarketsMOJO and negative results in the latest quarter make it a 'Sell' for now. Investors should carefully consider all factors before making any investment decisions.