Tinna Trade Receives 'Sell' Rating from MarketsMOJO, Financial Performance and Valuation Raise Concerns

Tinna Trade, a smallcap trading company, has recently received a 'Sell' rating from MarketsMOJO. This downgrade is based on several factors, including weak long-term fundamental strength, high debt to EBITDA ratio, and low profitability per unit of shareholders' funds.
Over the past 5 years, Tinna Trade has seen a -31.10% CAGR growth in operating profits, indicating a decline in its financial performance. Additionally, the company's high debt to EBITDA ratio of 8.00 times raises concerns about its ability to service its debt. Furthermore, with a return on equity of only 1.41%, the company's profitability per unit of shareholders' funds is low.

Moreover, Tinna Trade's valuation is considered to be very expensive, with a ROCE of 44 and an enterprise value to capital employed ratio of 34.2. This is further supported by the fact that the stock is currently trading at a premium compared to its average historical valuations.

In the past year, while the stock has generated a significant return of 1448.96%, its profits have actually fallen by 0%. This raises questions about the sustainability of the stock's performance.

Another concerning factor is that despite its size, domestic mutual funds hold only 0% of the company. This could indicate that either they are not comfortable with the current price or they have not conducted in-depth research on the company.

On a positive note, Tinna Trade has shown some promising results in the recent quarter, with a higher PAT of Rs 0.06 crore and the highest net sales of Rs 107.72 crore. However, its PBT less OI is still in the negative at Rs -0.01 crore.

From a technical standpoint, the stock is currently in a mildly bullish range, with multiple indicators such as MACD, Bollinger Band, KST, DOW, and OBV showing bullish signals.

While Tinna Trade has outperformed the BSE 500 in the long term as well as the near term, with a return of 1448.96% in the last year, the recent downgrade by MarketsMOJO raises concerns about the company's future performance. Investors should carefully consider these factors before making any investment decisions.