Shri Bajrang Alliance downgraded to 'Sell' by MarketsMOJO due to weak fundamentals.

Shri Bajrang Alliance, a microcap company in the iron and steel industry, has recently been downgraded to a 'Sell' by MarketsMOJO on May 22, 2024. This decision was based on the company's weak long-term fundamental strength, as it has been facing operating losses. Additionally, the company has a high debt to EBITDA ratio of 6.01 times, indicating a low ability to service debt.
In the latest quarter, the company's net sales have fallen by -20.7%, with PBDIT at its lowest at Rs -2.19 crore. The operating profit to net sales ratio is also at its lowest at -1.76%. These factors contribute to the 'Sell' rating given by MarketsMOJO.

On a technical level, the stock is currently in a mildly bullish range, with its MACD and KST technical factors also showing a bullish trend. However, with a ROCE of 1.8, the stock is considered to have an attractive valuation with a 0.9 enterprise value to capital employed. It is also trading at a discount compared to its average historical valuations.

Despite the recent decline in profits, the stock has generated a return of 99.10% in the past year, outperforming the market (BSE 500) returns of 36.06%. This could be attributed to the rising confidence of promoters in the company, as they have increased their stake by 0.86% in the previous quarter and currently hold 64.83% of the company. This is a positive sign for the future of the business.

In conclusion, while Shri Bajrang Alliance may have faced some challenges in the past year, the company's stock is still performing well and has the potential for growth. However, investors should carefully consider the company's financials and market performance before making any investment decisions.