Intrasoft Technologies Receives 'Sell' Rating from MarketsMOJO Due to Weak Financial Performance

Intrasoft Technologies, a BPO/ITeS company in the microcap category, has recently received a 'Sell' rating from MarketsMOJO on July 1, 2024. This downgrade is based on several factors that indicate a weak financial performance and a bearish trend for the company's stock.
One of the main reasons for the 'Sell' rating is the company's high Debt to EBITDA ratio of 3.37 times, which indicates a low ability to service its debt. Additionally, the company's Return on Equity (avg) of 5.04% is also low, indicating a low profitability per unit of shareholders' funds.

In terms of recent financial results, Intrasoft Technologies has shown flat results in March 2024, with the highest interest expense of Rs 3.16 crore and non-operating income accounting for 63.22% of the Profit Before Tax (PBT). The company's EPS (Q) is also at its lowest at Rs 1.45.

From a technical standpoint, the stock is currently in a Mildly Bearish range and has been in a downward trend since June 27, 2024, with a return of -2.51%. The MACD, a key technical indicator, has also been Bearish since June 27, 2024.

In the long term, Intrasoft Technologies has underperformed the BSE 500 index, with a return of -6.76% in the last year. However, the company's ROCE of 6.8 and a PEG ratio of 4.1 suggest a Very Attractive valuation with a 1 Enterprise value to Capital Employed. The stock is also currently trading at a discount compared to its average historical valuations.

In terms of ownership, the promoter holding has decreased this quarter and now stands at 43.06% of the company. This could also be a contributing factor to the 'Sell' rating.

Overall, Intrasoft Technologies' recent financial performance and technical trends suggest a weak outlook for the company's stock. Investors may want to consider these factors before making any investment decisions.