Ashirwad Capital Downgraded to 'Sell' by MarketsMOJO, But Shows Strong Long-Term Performance.

Ashirwad Capital, a microcap finance company, has recently been downgraded to a 'Sell' by MarketsMOJO on March 6, 2024. This decision was based on the company's weak long-term fundamental strength, with an average Return on Equity (ROE) of 6.41% and poor long-term growth, with an annual operating profit growth rate of only 7.77%.
In terms of recent performance, Ashirwad Capital did show positive results in December 2023, with its PAT(Q) reaching a high of Rs 0.73 crore, PBDIT(Q) at Rs 0.78 crore, and PBT LESS OI(Q) at Rs 0.77 crore. However, the stock is currently trading in a mildly bullish range, with its MACD and KST technical factors also showing a bullish trend.

With an ROE of 10.9, the stock is fairly valued with a price to book value of 2.6. However, it is currently trading at a premium compared to its average historical valuations. Over the past year, the stock has generated a return of 89.39%, while its profits have risen by 65%. This gives the company a PEG ratio of 0.3.

Institutional investors have also shown an increasing interest in Ashirwad Capital, with their stake in the company increasing by 0.83% over the previous quarter. These investors have better resources and capabilities to analyze the fundamentals of companies, making their participation a positive sign for the company.

Despite the recent downgrade, Ashirwad Capital has shown market-beating performance in the long term as well as the near term. Along with generating a return of 89.39% in the last year, the stock has also outperformed BSE 500 in the last 3 years, 1 year, and 3 months. While the stock may currently be facing some challenges, its past performance and institutional interest make it a company worth keeping an eye on.