Mayur Floorings Receives 'Sell' Rating from MarketsMOJO, Weak Long-Term Fundamentals and Debt Servicing Ability Cited

Mayur Floorings, a microcap company in the mining and minerals industry, has recently received a 'Sell' rating from MarketsMOJO on October 1st, 2024. This downgrade is based on the company's weak long-term fundamental strength, with a -1.23% CAGR growth in operating profits over the last 5 years. Additionally, Mayur Floorings has a poor ability to service its debt, with a low EBIT to Interest ratio of 0.11.
In terms of profitability, the company has only been able to generate a low Return on Equity of 0.64%, indicating low profitability per unit of shareholders' funds. The latest financial results for June 2024 also show a flat performance, with the lowest EPS (Q) at Rs 0.02.

However, there are some bullish factors for the stock, such as being in a mildly bullish range and having multiple bullish indicators like MACD, Bollinger Band, and KST. Mayur Floorings also has an attractive valuation with a ROCE of -1.1 and a 1.4 Enterprise value to Capital Employed. The stock is currently trading at a discount compared to its historical valuations.

Despite the recent downgrade, Mayur Floorings has shown market-beating performance in the long term, as well as the near term. In the past year, the stock has generated a return of 58.23%, outperforming the BSE 500 index. This trend has also been seen in the last 3 years, 1 year, and 3 months.

It is worth noting that the majority of shareholders in Mayur Floorings are non-institutional investors. This could potentially lead to higher volatility in the stock price. Overall, while the company has shown some positive signs, the recent downgrade by MarketsMOJO suggests caution for potential investors.