Inani Securities Receives 'Sell' Rating from MarketsMOJO Due to Weak Fundamental Strength

Inani Securities, a microcap finance and NBFC company, has recently received a 'Sell' rating from MarketsMOJO on June 25, 2024. This downgrade is due to the company's weak long-term fundamental strength, with operating losses and a poor annual growth rate of -4.12% in net sales.
Despite positive results in March 2024, with the highest PAT (Q) at Rs 1.21 crore and EPS (Q) at Rs 2.67, the stock is currently in a mildly bullish range. Its technical factors, such as MACD and KST, are also showing bullish signals.

In terms of valuation, Inani Securities has a fair price to book value of 1 and is currently trading at a discount compared to its historical average. Additionally, the company's profits have risen by 87% in the past year, resulting in a low PEG ratio of 0.1.

The majority shareholders of Inani Securities are its promoters, indicating their confidence in the company's performance. In fact, the stock has not only shown market-beating performance in the long term, but also in the near term, outperforming the BSE 500 index in the last 3 years, 1 year, and 3 months.

Based on these factors, MarketsMOJO has downgraded its stock call on Inani Securities to 'Sell'. Investors should carefully consider these factors before making any investment decisions.