Classic Leasing & Finance Downgraded to 'Sell' by MarketsMOJO Due to Weak Fundamentals

Classic Leasing & Finance, a microcap finance company, has recently been downgraded to a 'Sell' by MarketsMOJO on November 29, 2024. This decision was based on the company's weak long-term fundamental strength, with a negative book value and poor growth in net sales and operating profit.
The stock is considered risky due to its negative book value and is currently trading above its average historical valuations. Despite a 187.10% return in the past year, the company's profits have only risen by 34%, resulting in a PEG ratio of 0.

However, there have been some positive results for Classic Leasing & Finance in September 2024, with the company's PBDIT(Q), PBT LESS OI(Q), and PAT(Q) reaching their highest levels at Rs 0.12 cr and Rs 0.17 cr respectively.

Technically, the stock is currently in a bullish range, with its technical trend improving from mildly bullish on October 30, 2024. This has resulted in a 111.97% return since then, with multiple factors such as MACD, Bollinger Band, KST, DOW, and OBV all indicating a bullish trend.

It is worth noting that the majority of shareholders in Classic Leasing & Finance are non-institutional investors. Despite the market beating performance of the stock, with a return of 187.10% in the last year compared to the BSE 500's return of 26.22%, MarketsMOJO has downgraded the stock to 'Sell' due to its weak long-term fundamentals. Investors should carefully consider these factors before making any investment decisions.