Intense Technologies Downgraded to 'Hold' by MarketsMOJO, Despite Strong Financials and Technicals

Intense Technologies, a microcap IT software company, has recently been downgraded to a 'Hold' by MarketsMOJO on August 13, 2024. This decision was based on various factors, including the company's high management efficiency with a ROE of 19.78% and a low Debt to Equity ratio of 0.01 times. Additionally, the company's PBT LESS OI(Q) has shown a growth of 41.7% and its DEBTORS TURNOVER RATIO(HY) is at its highest at 2.55 times. The company's NET SALES(Q) have also reached a high of Rs 39.36 cr.
Technically, the stock is currently in a Mildly Bullish range and both its MACD and KST technical factors are Bullish. However, with a ROE of 12.1, the stock is fairly valued with a 2.6 Price to Book Value. It is also trading at a premium compared to its average historical valuations. In the past year, the stock has generated a return of 72.88%, while its profits have only risen by 15%. The PEG ratio of the company is 1.3.

The majority shareholders of Intense Technologies are Non-Institutional investors. The company has shown a market-beating performance in the long term as well as the near term, outperforming the BSE 500 index in the last 3 years, 1 year, and 3 months.

However, one area of concern is the poor long-term growth of the company, with its operating profit growing at an annual rate of only 14.26% over the last 5 years. This may have contributed to the downgrade of the stock to a 'Hold' by MarketsMOJO. Investors are advised to carefully consider these factors before making any investment decisions regarding Intense Technologies.