Venkys (India) Downgraded to 'Sell' by MarketsMOJO, Poor Growth and Technical Trends Cited

Venkys (India), a smallcap FMCG company, has recently been downgraded to a 'Sell' by MarketsMOJO on July 18, 2024. This decision was based on several factors, including poor long-term growth with an annual rate of -26.70% in operating profit over the last 5 years. The stock is also currently in a Mildly Bearish range, with a technical trend that has deteriorated since July 18, 2024, resulting in -3.25% returns. Additionally, the key technical factor, MACD, has been Bearish since the same date.
Despite being a smallcap company, Venkys (India) has a low domestic mutual fund holding of only 0.13%. This could indicate that mutual funds are either not comfortable with the stock's price or the company's business. Furthermore, the stock has consistently underperformed against the benchmark over the last 3 years, with -2.88% returns in the last 1 year and underperformance against BSE 500 in each of the last 3 annual periods.

On the positive side, Venkys (India) has a strong ability to service debt with a low Debt to EBITDA ratio of 0.28 times. Its PAT(9M) is also higher at Rs 59.66 Cr and PBDIT(Q) is the highest at Rs 50.03 cr. Additionally, the company has a Fair valuation with a 1.9 Price to Book Value and a ROE of 5.8. However, the stock is currently trading at a premium compared to its average historical valuations. While the stock has generated a return of -2.88% in the past year, its profits have risen by 12.2%, resulting in a PEG ratio of 2.7.

In conclusion, based on the recent downgrade and the various factors mentioned, it may be wise for investors to consider selling their stocks in Venkys (India). However, it is important to note that this is not a recommendation and investors should do their own research and analysis before making any investment decisions.