Zee Media Corporation Downgraded to 'Sell' by MarketsMOJO Due to Poor Growth and Negative EBITDA

Zee Media Corporation, a microcap company in the TV broadcasting and software industry, has recently been downgraded to a 'Sell' by MarketsMOJO on August 5th, 2024. This decision was based on the company's poor long-term growth, flat results in March 2024, and risky negative EBITDA.
One of the main reasons for the downgrade is the company's poor long-term growth. Over the last 5 years, Zee Media Corporation's operating profit has declined at an annual rate of -177.71%. In addition, the company's cash and cash equivalents were at their lowest at Rs 9.70 crore, and its debt-equity ratio was at its highest at 0.85 times in March 2024. The debtors turnover ratio was also at its lowest at 3.10 times, indicating potential issues with collecting payments.

Another concerning factor is the company's negative EBITDA, which makes the stock a risky investment. Despite generating a return of 26.25% in the past year, Zee Media Corporation's profits have fallen by -150.8%. This suggests that the company may not be able to sustain its current level of profitability.

Furthermore, domestic mutual funds hold only 0% of the company, despite its size. This could indicate that they are not comfortable with the company's current stock price or its business. However, Zee Media Corporation does have a strong ability to service debt, with a low debt to EBITDA ratio of 1.18 times.

From a technical standpoint, the stock is currently in a mildly bullish range, with both the MACD and KST technical factors showing a bullish trend. However, investors should still be cautious when considering investing in Zee Media Corporation, as the company's fundamentals do not currently support a positive outlook.