Inter Globe Finance Downgraded to 'Sell' by MarketsMOJO Due to Weak Fundamentals

Inter Globe Finance, a microcap finance company, has recently been downgraded to a 'Sell' by MarketsMOJO on November 4th, 2024. This decision was based on weak long-term fundamental strength, with an average Return on Equity (ROE) of only 0.03%. Additionally, the company has shown poor long-term growth, with Net Sales growing at an annual rate of only 92.19%.
Despite declaring positive results for the last 5 consecutive quarters, with NET SALES(HY) at Rs 122.03 cr growing at an impressive rate of 432.65%, PBT LESS OI(Q) at Rs 2.44 cr growing at 94.0%, and PAT(HY) higher at Rs 8.71 cr, the overall performance of Inter Globe Finance has not been enough to outweigh its weak fundamentals.

On a technical level, the stock is currently in a mildly bullish range, with both its MACD and KST technical factors showing bullish signals. However, with an ROE of 8.7, the stock is fairly valued with a 1 Price to Book Value. It is also currently trading at a discount compared to its average historical valuations.

Despite generating a return of 231.49% in the last year, which is significantly higher than the market (BSE 500) returns of 31.79%, the profits of Inter Globe Finance have only risen by 179%. This gives the company a PEG ratio of 0.1, indicating that it may not be a wise investment choice for the long term.

In conclusion, while Inter Globe Finance has shown market-beating performance in the past year, its weak fundamentals and fair valuation make it a 'Sell' according to MarketsMOJO. Investors should carefully consider these factors before making any decisions regarding this microcap finance company.