Jayant Agro Organics, a microcap player in the chemicals industry, has recently faced a downgrade in its stock call to ‘Sell’ by MarketsMOJO as of January 1, 2025. This decision stems from concerns over the company’s long-term growth, highlighted by an annual operating profit decline of 9.39% over the past five years.

The company’s financial performance has shown negative results for the quarter ending September 2024, with operating cash flow recorded at its lowest at Rs 16.90 crore. Additionally, the return on capital employed (ROCE) has dipped to 11.37%, and the inventory turnover ratio stands at a low of 6.59 times.

Despite being a microcap company, domestic mutual funds hold a mere 0.07% stake in Jayant Agro Organics, suggesting a lack of confidence in the current valuation or business prospects. The technical trend for the stock is currently sideways, indicating no clear price momentum, with a slight decline of 0.27% since the beginning of the year. While the stock has generated an 8.49% return over the past year, its profits have increased by 24.3%, and it maintains an attractive valuation with a PEG ratio of 0.6.