MarketsMOJO Downgrades Rana Sugars to 'Sell' Due to High Debt and Negative Results

Rana Sugars, a microcap company in the sugar industry, has recently been downgraded to a 'Sell' by MarketsMOJO on 2024-08-28. This decision was based on several factors, including the company's high debt to EBITDA ratio of 4.88 times, which indicates a low ability to service debt. Additionally, Rana Sugars has declared negative results for the last 4 consecutive quarters, with a significant decrease in profits and net sales.
Furthermore, the company has consistently underperformed against the benchmark over the last 3 years, with a -12.94% return in the last 1 year and underperformance against BSE 500 in each of the last 3 annual periods. On the other hand, Rana Sugars has shown healthy long-term growth in terms of operating profit, with an annual growth rate of 61.59%.

From a technical standpoint, the stock's trend is currently sideways, indicating no clear price momentum. The technical trend has also deteriorated since 28-Aug-24, with a -6.52% return since then. However, Rana Sugars does have an attractive valuation with a ROCE of 5.1 and an enterprise value to capital employed ratio of 0.8. It is also currently trading at a discount compared to its average historical valuations.

It is worth noting that the majority of Rana Sugars' shareholders are non-institutional investors. While the stock has generated a return of -12.94% in the past year, its profits have fallen by -77%. Overall, considering the company's financial performance and market trends, MarketsMOJO has downgraded Rana Sugars to a 'Sell'.