Orissa Bengal Carrier Downgraded to 'Sell' by MarketsMOJO Due to Poor Long-Term Growth and Declining Profits

Orissa Bengal Carrier, a microcap logistics company, has recently been downgraded to a 'Sell' by MarketsMOJO on August 29, 2024. This decision was based on the company's poor long-term growth, with an annual operating profit growth rate of -45.34% over the last 5 years. In addition, the company's results for June 2024 showed a decline in both PBT (Profit Before Tax) and PAT (Profit After Tax) by -65.00% and -50.7%, respectively.
Technically, the stock is currently in a Mildly Bearish range, with a deteriorating trend since August 29, 2024, resulting in a -1.44% return. The key technical factor, OBV (On-Balance Volume), has also been Mildly Bearish since the same date.

Furthermore, Orissa Bengal Carrier has underperformed the market in the last 1 year, with a return of only 14.40% compared to the market's (BSE 500) return of 38.88%.

Other factors to consider include the company's low Debt to Equity ratio of 0.05 times, indicating a strong financial position. Additionally, with a ROCE (Return on Capital Employed) of 3.1, the company has a Very Attractive valuation with a 1.3 Enterprise value to Capital Employed. However, the stock is currently trading at a discount compared to its average historical valuations.

It is worth noting that while the stock has generated a return of 14.40% in the last 1 year, its profits have only risen by 1.5%, resulting in a high PEG (Price/Earnings to Growth) ratio of 30.1.

Orissa Bengal Carrier's majority shareholders are its promoters, indicating their confidence in the company's future prospects. However, based on the current data and analysis, MarketsMOJO has downgraded the stock to a 'Sell' recommendation. Investors are advised to carefully consider these factors before making any investment decisions.