COSYN's downgrade sparks investor concerns

COSYN, a microcap IT software company, has recently received a downgrade from 'Strong Sell' to 'Sell' by MarketsMOJO on September 11, 2023. This news has raised concerns among investors and industry experts alike.
The downgrade is due to the company's weak long-term fundamental strength, with a negative CAGR growth of -34.27% in operating profits over the past 5 years. Additionally, COSYN's ability to service its debt is also a cause for concern, with a poor EBIT to Interest ratio of 0.10.

Moreover, the company's return on equity (average) stands at a low 1.83%, indicating low profitability per unit of shareholders' funds. These factors have led to a flat performance for COSYN in September 2023.

One of the major risks for investors is the negative operating profits of the company. The stock is also trading at a risky level compared to its historical valuations. In the past year, while the stock has seen a significant return of 56.85%, its profits have fallen by -161.1%.

On the technical side, COSYN's stock is currently in a mildly bullish range. Both the MACD and KST technical factors are also showing bullish signals.

Majority shareholders of COSYN are the promoters, which can be seen as a positive factor for the company. However, the market performance of the stock has been beating the overall market (BSE 500) with a return of 56.85% in the past year, compared to the market's 16.72%.

In conclusion, while the downgrade to a 'Sell' from 'Strong Sell' may raise concerns for investors, it is important to consider the overall performance and factors of COSYN before making any investment decisions.