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 18, 2024. This decision was based on the company's weak long-term fundamental strength, with an average Return on Equity (ROE) of 0.03% and poor long-term growth as Net Sales has only grown by an annual rate of 96.64%.
Other factors that contributed to this downgrade include the company's recent positive results for the last 6 consecutive quarters, with the highest operating cash flow of Rs -0.09 Cr and a net sales growth of 58.61% at Rs 99.56 cr. However, the company's profits have also risen by 324.3% in the past year, resulting in a PEG ratio of 0.1.

Technically, the stock is currently in a mildly bullish range, with both the MACD and KST technical factors showing a bullish trend. With an ROE of 8, the stock is fairly valued with a price to book value of 0.9. Additionally, the stock is currently trading at a discount compared to its average historical valuations.

Despite the recent downgrade, Inter Globe Finance has consistently generated returns over the last 3 years, outperforming BSE 500 in each of the last 3 annual periods. In the past year alone, the stock has generated a return of 208.28%, showcasing its potential for growth in the finance industry.