Rapicut Carbides Receives 'Sell' Rating from MarketsMOJO Due to Weak Fundamentals

Rapicut Carbides, a microcap engineering company, has recently received a 'Sell' rating from MarketsMOJO on August 1, 2024. This downgrade is based on the company's weak long-term fundamental strength, with a -171.52% CAGR growth in operating profits over the last 5 years. Additionally, the company's ability to service its debt is weak, with a poor EBIT to Interest (avg) ratio of 0.27.
Furthermore, Rapicut Carbides has a low profitability per unit of shareholders' funds, with a Return on Equity (avg) of 2.22%. This is reflected in its expensive valuation, with a 4.1 Price to Book Value and a premium trading price compared to its historical valuations. Despite generating a return of 147.53% in the past year, the company's profits have only risen by 136.3%, resulting in a PEG ratio of 0.7.

On a positive note, Rapicut Carbides has declared positive results for the last 4 consecutive quarters, with its highest net sales, PBDIT, and PBT LESS OI in the last quarter. The stock is also technically in a mildly bullish range, with multiple factors such as MACD, Bollinger Band, and KST indicating a bullish trend.

The majority shareholders of Rapicut Carbides are non-institutional investors, and the company has consistently outperformed BSE 500 in the last 3 annual periods. However, considering the recent downgrade and weak fundamental strength, investors may want to approach this stock with caution.