ISL Consulting Receives 'Sell' Rating from MarketsMOJO Due to Weak Fundamentals

ISL Consulting, a microcap company in the finance/NBFC industry, has recently received a 'Sell' rating from MarketsMOJO on 2024-09-23. This downgrade is based on several factors that indicate weak long-term fundamental strength for the company.
One of the main reasons for the 'Sell' rating is the company's average Return on Equity (ROE) of 2.62%, which is considered weak. Additionally, the company has shown poor long-term growth with a -6.20% annual growth rate in Net Sales and a -5.59% growth rate in Operating profit.

Furthermore, ISL Consulting has an expensive valuation with a Price to Book Value of 4.9 and is currently trading at a discount compared to its historical valuations. While the stock has generated a return of 5.93% in the past year, its profits have only risen by 194.3%, resulting in a low PEG ratio of 0.1.

In the last 1 year, ISL Consulting has underperformed the market (BSE 500) with a return of only 5.93%, while the market has seen a return of 40.49%. This further supports the 'Sell' rating for the stock.

On a positive note, the company has declared positive results for the last 5 consecutive quarters, with higher NET SALES(HY) at Rs 19.51 cr and significant growth in PBT LESS OI(Q) at Rs 1.37 cr (49.3%) and PAT(Q) at Rs 1.39 cr (79.4%).

However, the technical trend for ISL Consulting is currently sideways, indicating no clear price momentum. The stock has also underperformed since the downgrade, generating -1.02% returns since 23-Sep-24.

It is worth noting that the majority shareholders of ISL Consulting are the promoters of the company. This information may be important for investors to consider when making decisions about the stock.

In conclusion, based on the recent downgrade by MarketsMOJO and the various factors mentioned, it may be wise for investors to approach ISL Consulting with caution and consider other options in the finance/NBFC industry.