MarketsMOJO Downgrades Orient Press to 'Sell' Based on Weak Fundamentals and Technical Factors

Orient Press, a microcap company in the packaging industry, has recently received a 'Sell' rating from MarketsMOJO on July 30, 2024. This downgrade is based on the company's weak long-term fundamental strength, with a -36.11% CAGR growth in operating profits over the last 5 years. Additionally, Orient Press has a high debt to EBITDA ratio of 17.39 times, indicating a low ability to service debt. The company's return on equity (avg) is also low at 0.24%, showing a lack of profitability per unit of shareholders' funds.
In the latest quarter, Orient Press reported flat results, with non-operating income accounting for 118.60% of profit before tax. Other factors contributing to the 'Sell' rating include the stock being in a mildly bullish range and its MACD and KST technical factors also being bullish. However, with a ROCE of 2.5, the stock does have an attractive valuation with a 1.2 enterprise value to capital employed. It is also currently trading at a discount compared to its average historical valuations.

Despite the stock generating a return of 45.90% over the past year, its profits have only risen by 68.3%. This could be a cause for concern for investors. It is worth noting that the majority shareholders of Orient Press are promoters, which may also impact the company's performance. Overall, MarketsMOJO's downgrade to 'Sell' for Orient Press is based on factual data and technical analysis, making it a reliable indicator for potential investors.