Jupiter Infomedia Receives 'Sell' Rating from MarketsMOJO, But Stock Shows Strong Performance and Potential Undervaluation

Jupiter Infomedia, a microcap IT software company, has recently received a 'Sell' rating from MarketsMOJO on February 2nd, 2024. This downgrade is based on several factors, including weak long-term fundamental strength with an average Return on Equity (ROE) of 7.24%, poor long-term growth with an annual operating profit growth rate of only 13.70% over the last 5 years, and a weak ability to service its debt with a poor EBIT to Interest (avg) ratio of -0.04.
Additionally, the company's valuation is considered very expensive with a price to book value of 2.3, and the stock is currently trading at a discount compared to its historical valuations. However, in the past year, the stock has generated a return of 159.62%, with profits rising by 222.7%. The PEG ratio of the company is also at a low of 0, indicating a potential undervaluation.

Other factors to consider include the company's positive results for the last 6 consecutive quarters, with a growth of 109.52% in PAT(HY) and a highest ROCE(HY) of 46.33%. Technically, the stock is in a mildly bullish range, with multiple factors such as MACD, Bollinger Band, and KST indicating a bullish trend.

The majority shareholders of Jupiter Infomedia are the promoters, and the company has a track record of market-beating performance in both the long-term and near-term. In the last 1 year, the stock has generated 159.62% returns and has outperformed BSE 500 in the last 3 years, 1 year, and 3 months. While the stock may have been downgraded to 'Sell', it is important to consider all factors before making any investment decisions.