Tyroon Tea Company Downgraded to 'Sell' by MarketsMOJO, Weak Fundamentals and Underperformance in Market

Tyroon Tea Company, a microcap tea and coffee company, has recently been downgraded to a 'Sell' by MarketsMOJO on September 11, 2024. This decision was based on the company's weak long-term fundamental strength, with a 6.94% CAGR growth in net sales over the last 5 years. In addition, the company's operating cash flow has been consistently low, with the lowest being Rs 0.46 Cr in June 2024.
Furthermore, Tyroon Tea Company has underperformed the market in the last year, with a return of only 22.22% compared to the market's return of 32.75% (BSE 500). The stock is currently in a mildly bullish range, with multiple factors such as MACD, KST, and OBV being bullish.

Despite having an attractive valuation with a price to book value of 1 and a return on equity of 9, the stock is trading at a fair value compared to its average historical valuations. However, in the past year, while the stock has generated a return of 22.22%, its profits have fallen by -5%.

It is worth noting that the majority shareholders of Tyroon Tea Company are the promoters. This information may be important for investors to consider when making decisions about the stock.

In conclusion, based on the recent downgrade by MarketsMOJO and the company's weak long-term fundamentals, it may be wise for investors to approach Tyroon Tea Company with caution and do further research before making any investment decisions.