Udayshivakumar Infra Downgraded to 'Sell' by MarketsMOJO Due to Negative Results in June Quarter

Udayshivakumar Infra, a microcap company in the capital goods industry, has recently been downgraded to a 'Sell' by MarketsMOJO on September 30, 2024. This decision was based on the company's negative results in the June quarter, after three consecutive quarters of positive performance. The profit after tax has fallen by a significant 75.6%, with the lowest operating profit to interest ratio and net sales in the quarter.
Technically, the stock is currently in a Mildly Bearish range, with the technical trend deteriorating from Mildly Bullish on September 30, 2024. The stock has generated a return of -1.42% since then, with the key technical factor, Bollinger Band, being Bearish since the same date.

However, there are some positive factors to consider. Udayshivakumar Infra has shown high management efficiency with a ROCE of 19.83%. The company also has a low debt to equity ratio of 0.10 times, indicating a healthy financial position. In terms of long-term growth, the net sales have grown at an annual rate of 40.00%.

Moreover, with a ROCE of 16.9, the company has a very attractive valuation with a 1.7 Enterprise value to Capital Employed. In the past year, while the stock has generated a return of 62.72%, its profits have also risen by 88%. This shows a strong performance by the company.

It is worth noting that the majority shareholders of Udayshivakumar Infra are the promoters themselves. This can be seen as a positive sign, as the promoters have a vested interest in the company's success.

In terms of market performance, Udayshivakumar Infra has outperformed the market (BSE 500) with a return of 62.72% in the last year, compared to the market's return of 39.48%. However, with the recent downgrade by MarketsMOJO, investors may want to carefully consider their investment in this microcap company in the capital goods industry.