Capital Trust Receives 'Sell' Rating from MarketsMOJO Due to Weak Fundamentals and Expensive Valuation

Capital Trust, a microcap finance company, has recently received a 'Sell' rating from MarketsMOJO. This downgrade is based on the company's weak long-term fundamental strength, with an average Return on Equity (ROE) of 7.74%. Additionally, the company has shown poor long-term growth, with net sales growing at an annual rate of -12.57% and operating profit at -185.42%.
One of the main reasons for the 'Sell' rating is the company's expensive valuation, with a price to book value of 1.9 and an ROE of 5.3. However, the stock is currently trading at a discount compared to its average historical valuations. Despite generating a return of 40.61% over the past year, the company's profits have only risen by 104.9%, resulting in a PEG ratio of 0.3.

On a positive note, Capital Trust has declared positive results for the last four consecutive quarters, with its highest PAT (Q) at Rs 2.02 crore, PBT LESS OI (Q) at Rs 2.56 crore, and EPS (Q) at Rs 1.25. Technically, the stock is in a mildly bullish range, with multiple factors such as MACD, KST, and OBV indicating a bullish trend.

It is worth noting that the majority shareholders of Capital Trust are promoters, which may have influenced the 'Sell' rating from MarketsMOJO. As a microcap finance company, Capital Trust may face challenges in the highly competitive finance/NBFC industry. Investors are advised to carefully consider all factors before making any investment decisions regarding Capital Trust.