Industrial & Prudential Investment Company Downgraded to 'Sell' by MarketsMOJO

Industrial & Prudential Investment Company, a smallcap finance company, has recently been downgraded to a 'Sell' by MarketsMOJO on November 4, 2024. This downgrade is due to weak long-term fundamental strength, with an average Return on Equity (ROE) of 6.36% and poor long-term growth in both net sales and operating profit. Additionally, despite its size, domestic mutual funds hold only 0% of the company, which may indicate a lack of confidence in the company's performance.
However, there are some positive factors to consider. The company has shown positive results in September 2024, with the highest operating cash flow of Rs 13.79 crore and a 34.20% growth in net sales. Its dividend payout ratio is also at its highest at 30.49%. Technically, the stock is in a mildly bullish range, with both MACD and KST technical factors also showing a bullish trend.

At a ROE of 6.3, the stock is fairly valued with a price to book value of 1.5. It is also trading at a fair value compared to its average historical valuations. In the past year, the stock has generated a return of 110.73%, while its profits have risen by 8%. However, the PEG ratio of the company is 2.8, which may indicate a slightly overvalued stock.

Despite the recent downgrade, Industrial & Prudential Investment Company has consistently generated returns over the last 3 years, outperforming the BSE 500 index in each of the last 3 annual periods. While the stock may not be recommended for purchase at this time, it is important to keep an eye on its performance in the future.