MarketsMOJO downgrades Samrat Forgings to 'Sell'

Samrat Forgings, a microcap company in the castings/forgings industry, has recently been in the news due to a stock call upgrade by MarketsMOJO. The company, which was previously rated as 'Strong Sell', has now been downgraded to 'Sell'.
According to MarketsMOJO, Samrat Forgings is facing several challenges that have led to this downgrade. The company has a high level of debt and its long-term fundamental strength is weak. In addition, its operating profit has only grown by an annual rate of 17.75% over the last 5 years, indicating poor long-term growth prospects.

One of the main concerns for Samrat Forgings is its ability to service its debt, with a low EBIT to Interest ratio of 1.92. This was reflected in their recent quarterly results, where the company had a low operating profit to interest ratio and high interest expenses. The earnings per share for the quarter were also low at Rs 1.60.

However, there are some positive factors to consider as well. The stock is currently in a bullish range and has shown improvement in its technical trend since the downgrade. It has also generated a return of 2.71% since then. The MACD and Bollinger Band technical factors are also currently bullish for the stock.

The majority shareholders of Samrat Forgings are its promoters, which could be a sign of their confidence in the company's future. Additionally, the company has consistently generated strong returns over the last 3 years, outperforming the BSE 500 index in each of the last 3 annual periods.

Overall, while there are some concerns surrounding Samrat Forgings, the company's recent upgrade to 'Sell' by MarketsMOJO and its consistent returns over the last few years may still make it a viable investment option for some. Investors are advised to conduct their own research and due diligence before making any investment decisions.