Savita Oil Technologies Downgraded to 'Sell' by MarketsMOJO, Poor Long-Term Growth and Decline in Profits

Savita Oil Technologies, a smallcap company in the lubricants industry, has recently been downgraded to a 'Sell' by MarketsMOJO on October 28, 2024. This decision was based on the company's poor long-term growth, with an annual operating profit growth rate of -24.74% over the last 5 years.
In addition, the company's results for June 2024 showed a decline in profit before tax (PBT) and a negative growth in non-operating income. However, Savita Oil Technologies has a high management efficiency with a ROE of 16.22% and a low debt to equity ratio of 0 times.

Technically, the stock is currently in a mildly bullish range with both MACD and KST technical factors showing a bullish trend. With a ROE of 12.4, the stock is fairly valued with a price to book value of 2.2. However, it is currently trading at a premium compared to its historical valuations.

Despite generating a return of 38.66% in the past year, the company's profits have fallen by -2.9%. Majority of the shareholders are promoters, indicating their confidence in the company's future prospects.

Savita Oil Technologies has also consistently outperformed the BSE 500 index in the last 3 annual periods, further showcasing its potential for growth. However, based on the recent downgrade by MarketsMOJO and the company's financial performance, it may be wise for investors to approach this stock with caution.