Jupiter Infomedia Receives 'Sell' Rating from MarketsMOJO, Despite Recent Positive Results

Jupiter Infomedia, a microcap IT software company, has recently received a 'Sell' rating from MarketsMOJO on February 14, 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 2.1 and is currently trading at a discount compared to its historical valuations. However, in the past year, the stock has generated a high return of 139.72%, while its profits have only risen by 222.7%, resulting in a PEG ratio of 0.

On a positive note, Jupiter Infomedia has declared positive results for the last 6 consecutive quarters, with a significant growth in PAT (HY) at Rs 2.64 crore, which has grown by 109.52%. The company's ROCE (HY) is also at its highest at 46.33%.

From a technical standpoint, the stock is currently in a mildly bullish range, with both the MACD and KST technical factors showing a bullish trend. The majority shareholders of the company are the promoters, which may provide some stability to the stock.

Overall, while Jupiter Infomedia has shown market-beating performance in the past year, the recent downgrade to a 'Sell' rating suggests caution for potential investors. It is important to consider all factors and do thorough research before making any investment decisions.