MarketsMOJO Downgrades Shalby to 'Sell' Due to Poor Long-Term Growth and Technical Deterioration

Shalby ., a smallcap healthcare services company, has recently been downgraded to a 'Sell' by MarketsMOJO on May 3rd, 2024. This downgrade is based on poor long-term growth, with net sales and operating profit only growing at an annual rate of 15.96% and 15.97% respectively over the last 5 years. Additionally, the company's results for December 2023 were flat, with interest growing at 30.82%, the lowest inventory turnover ratio at 4.25 times, and cash and cash equivalents at the lowest level of Rs 10.08 crore.
Technically, the stock is in a mildly bearish range, with the technical trend deteriorating from mildly bullish on May 3rd, 2024. Since then, the stock has generated a return of -1.43%. The Bollinger Band and KST technical factors are also bearish.

Other factors to consider include the company's low debt to equity ratio of 0.02 times and an attractive valuation with a price to book value of 3. The stock is currently trading at a premium compared to its average historical valuations. However, over the past year, the stock has generated a return of 93.89%, while profits have only risen by 27.1%. The PEG ratio of the company is 1.3.

Institutional investors have also shown an increasing interest in the company, with their stake increasing by 0.51% over the previous quarter. They currently hold 4.62% of the company, and their resources and capabilities allow them to better analyze the fundamentals of companies compared to retail investors.

Despite the market-beating performance of the stock, with a return of 93.89% in the last year compared to the market's return of 36.10%, the recent downgrade by MarketsMOJO suggests caution for potential investors. It is important to carefully consider all factors before making any investment decisions.