Aastamangalam Finance Downgraded to 'Sell' by MarketsMOJO

Aastamangalam Finance, a microcap finance company, has recently been downgraded to a 'Sell' by MarketsMOJO on November 7, 2023. This decision was based on the company's weak long-term fundamental strength, with an average Return on Equity (ROE) of 4.78%. Additionally, the company's results for September 2023 were flat.
One of the main reasons for the downgrade is the company's expensive valuation, with a price to book value of 1.4 and a ROE of 7.7. This puts the stock at a premium compared to its average historical valuations. Furthermore, while the stock has generated a return of 229.03% in the past year, its profits have only risen by 164%, resulting in a PEG ratio of 0.

On a technical level, the stock is currently in a mildly bullish range, with both the MACD and KST technical factors showing a bullish trend. The majority of shareholders in Aastamangalam Finance are non-institutional investors.

Despite its recent downgrade, Aastamangalam Finance has shown market-beating performance in the long term as well as the near term. In addition to generating a 229.03% return in the past year, the stock has also outperformed the BSE 500 in the last 3 years, 1 year, and 3 months. However, investors should carefully consider the company's weak fundamental strength and expensive valuation before making any investment decisions.