Orient Press Receives 'Sell' Rating from MarketsMOJO Due to Weak Fundamentals and High Debt

Orient Press, a microcap company in the packaging industry, has recently received a 'Sell' rating from MarketsMOJO on July 19, 2024. This downgrade is based on the company's weak long-term fundamental strength, with a -36.11% CAGR growth in operating profits over the last 5 years. Additionally, Orient Press has a high debt to EBITDA ratio of 17.39 times, indicating a low ability to service debt. The company's return on equity (avg) is also low at 0.24%, showing a lack of profitability per unit of shareholders' funds.
In the recent quarter, Orient Press reported flat results, with non-operating income accounting for 118.60% of profit before tax. However, the stock is technically in a mildly bullish range, with its MACD and KST technical factors also showing a bullish trend.

Despite these factors, Orient Press has an attractive valuation with a ROCE of 2.5 and an enterprise value to capital employed ratio of 1.2. The stock is currently trading at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 45.89%, while its profits have risen by 68.3%.

The majority shareholders of Orient Press are the promoters, indicating their confidence in the company's performance. The stock has also outperformed the market (BSE 500) with a return of 45.89% compared to the market's 34.15% return in the last year. While MarketsMOJO has downgraded the stock to 'Sell', investors should carefully consider all factors before making any investment decisions.