J J Finance Corporation Downgraded to 'Sell' by MarketsMOJO Due to Weak Fundamentals and Low Cash Flow

J J Finance Corporation, a microcap finance company, has recently been downgraded to a 'Sell' by MarketsMOJO. This decision was based on the company's weak long-term fundamental strength, with an average Return on Equity (ROE) of only 2.71%. In addition, the company's operating cash flow for the year ending September 2024 was at its lowest at Rs -0.44 Cr.
Despite these factors, the stock is currently in a mildly bullish range and has multiple bullish indicators such as MACD, Bollinger Band, and KST. It also has an attractive valuation with a ROE of 6.9 and a price to book value of 1.2. Furthermore, the stock is currently trading at a discount compared to its average historical valuations.

One of the major shareholders of J J Finance Corporation is its promoters. The company has also shown market-beating performance, with a return of 165.44% in the last year, significantly higher than the market (BSE 500) returns of 27.32%.

While the stock has shown impressive returns in the past year, its profits have only risen by 67%, resulting in a PEG ratio of 0. This indicates that the stock may not be a good investment for the long term. Investors should carefully consider these factors before making any decisions regarding J J Finance Corporation's stock.