Race Eco Chain Receives 'Sell' Rating from MarketsMOJO, Indicating Poor Management and Low Profitability.

Race Eco Chain, a microcap company in the trading industry, has recently received a 'Sell' rating from MarketsMOJO on September 16, 2024. This downgrade is based on several factors that indicate poor management efficiency and low profitability for the company.
One of the main reasons for the 'Sell' rating is the company's low Return on Capital Employed (ROCE) of 3.35%, which signifies low profitability per unit of total capital. Additionally, Race Eco Chain has a high Debt to EBITDA ratio of 3.45 times, indicating a low ability to service debt. The company's Return on Equity (ROE) is also low at 5.23%, further highlighting its lack of profitability.

In the latest quarter, Race Eco Chain reported negative results with a 21.94% decrease in net sales and an 87.30% decrease in PBT LESS OI. The company's EPS (earnings per share) was also at its lowest at Rs 0.07. With a ROCE of 8.3, the stock is considered to have a very expensive valuation with a 12.9 Enterprise value to Capital Employed.

Despite its size, domestic mutual funds hold only 0% of the company, which could indicate their discomfort with the stock's price or business. However, there are some positive factors for Race Eco Chain, such as healthy long-term growth with an annual growth rate of 46.50% in net sales and 45.00% in operating profit.

Technically, the stock is in a mildly bullish range with multiple factors, including MACD, Bollinger Band, KST, and OBV, indicating a bullish trend. Over the last three years, Race Eco Chain has consistently outperformed the BSE 500 index, generating a return of 68.31%.

In conclusion, while Race Eco Chain may have some positive aspects, the recent 'Sell' rating from MarketsMOJO and the company's overall poor financial performance suggest caution for potential investors.