Olympia Industries: From 'Sell' to 'Strong Sell'

Olympia Industries, a microcap trading company, has faced a recent downgrade by MarketsMOJO from 'Sell' to 'Strong Sell' on July 17, 2023. This is due to weak long-term fundamental strength as shown by a low average Return on Capital Employed (ROCE) of 2.09% and poor long-term growth with an 11.37% annual rate over the past 5 years. Additionally, the company's high Debt to EBITDA ratio of 13.04 times suggests a low ability to service debt.
Olympia Industries has also declared negative results for the last 3 consecutive quarters, with a 30.5% decrease in net sales and a low EPS of Rs 0.27. The stock is currently in a bearish range, with a deteriorating technical trend since October 23, 2023, resulting in a -8.79% return. Both the MACD and KST technical factors are also bearish.

In the past year, while the overall market (BSE 500) has generated returns of 16.72%, Olympia Industries has significantly underperformed with negative returns of -44.35%. However, the company does have some attractive factors, such as a ROCE of 4.4 and a low Enterprise value to Capital Employed of 0.9. It is also currently trading at a discount compared to its average historical valuations.

It is worth noting that the majority shareholders of Olympia Industries are its promoters. Overall, the stock is currently facing challenges and has not performed well in the past year. Investors should carefully consider the company's financials and future prospects before making any investment decisions.