Nutech Global Receives 'Sell' Rating from MarketsMOJO

Nutech Global, a microcap company in the textile industry, has recently received a 'Sell' rating from MarketsMOJO on November 7, 2023. This downgrade is based on the company's weak long-term fundamental strength, with a -4.96% CAGR growth in operating profits over the last 5 years. Additionally, Nutech Global has a high debt to EBITDA ratio of 7.44 times, indicating a low ability to service debt. The company's return on equity (avg) of 0.82% also suggests low profitability per unit of shareholders' funds.
In the latest quarter, Nutech Global's results have been flat, with the lowest PBDIT (Q) at Rs 0.20 crore and the lowest operating profit to net sales (Q) at 2.02%. The company's PBT less OI (Q) is also at its lowest at Rs -0.14 crore.

Other factors contributing to the 'Sell' rating include the stock being technically in a mildly bullish range, with its MACD and KST technical factors also being bullish. Nutech Global's ROCE of 6.3 indicates a fair valuation with a 1.2 enterprise value to capital employed. However, the stock is currently trading at a discount compared to its average historical valuations. Furthermore, while the stock has generated a return of 249.09% in the past year, its profits have fallen by -57%.

Nutech Global's majority shareholders are non-institutional investors. Despite this, the stock has outperformed the market (BSE 500) with a return of 249.09% in the last year, compared to the market's return of 16.72%. With these factors in mind, MarketsMOJO has downgraded its stock call on Nutech Global to 'Sell'.