Cil Securities Downgraded to 'Sell' by MarketsMOJO, Weak Fundamental Strength and Growth

Cil Securities, a microcap company in the finance/NBFC industry, has recently been downgraded to a 'Sell' by MarketsMOJO on September 23, 2024. This decision was based on several factors, including weak long-term fundamental strength with an average Return on Equity (ROE) of 4.79% and poor long-term growth with an annual net sales growth rate of 20.55%.
In addition, the company's recent results for June 2024 showed flat performance, with its cash and cash equivalents at a low of Rs 7.60 crore. However, the stock is currently in a bullish range and has shown improvement in its technical trend since August 12, 2024, generating a return of 7.02% since then.

Other bullish factors for the stock include its ROE of 10.3, which indicates a fair valuation with a 1 price to book value. However, the stock is currently trading at a premium compared to its average historical valuations. Despite generating a return of 118.77% in the past year, the company's profits have only risen by 20.9%, resulting in a PEG ratio of 0.5.

The majority shareholders of Cil Securities are the promoters, and the company has consistently outperformed the BSE 500 index in the last 3 annual periods. While the stock has shown strong returns in the past year, its long-term fundamental strength and growth potential may be cause for concern for potential investors.