Super Sales India Downgraded to 'Sell' by MarketsMOJO Due to Poor Management and Growth Potential

Super Sales India, a microcap company in the textile industry, has recently been downgraded to a 'Sell' by MarketsMOJO on August 1, 2024. This decision was based on several factors that indicate poor management efficiency and long-term growth potential.
One of the main reasons for the downgrade is the company's low Return on Equity (ROE) of 5.11%, which signifies low profitability per unit of shareholders' funds. Additionally, the company's net sales have only grown at an annual rate of 7.24% over the last 5 years, indicating a lack of significant growth.

In the most recent quarter, Super Sales India reported negative results with a PAT (profit after tax) of -1.95 crore, a decrease of 130.8% from the previous year. The company's ROCE (Return on Capital Employed) for the half-year was also at its lowest at 4.84%, and its operating profit to interest ratio was only 2.10 times, indicating a weak financial performance.

Another concerning factor is that despite being a microcap company, domestic mutual funds hold only 0% of the company's shares. This could suggest that either the mutual funds are not comfortable with the company's current price or its business.

On a positive note, the stock is currently in a mildly bullish range, and its MACD and KST technical factors are also bullish. However, with an ROCE of 3.2, the stock is fairly valued with an enterprise value to capital employed ratio of 0.9. It is also trading at a discount compared to its historical valuations.

In the past year, Super Sales India's stock has generated a return of 48.98%, but its profits have fallen by -27.9%. However, the company has consistently outperformed the BSE 500 index in the last 3 annual periods, indicating consistent returns.

In conclusion, while Super Sales India may have some positive technical indicators, its poor management efficiency, low growth potential, and negative financial performance make it a 'Sell' according to MarketsMOJO. Investors should carefully consider these factors before making any investment decisions.