K Z Leasing & Finance Downgraded to 'Sell' by MarketsMOJO Due to Weak Fundamentals and Declining Profits

K Z Leasing & Finance, a microcap finance company, has recently been downgraded to a 'Sell' by MarketsMOJO on September 9, 2024. This decision was based on the company's weak long-term fundamental strength, as it has been facing operating losses. In addition, its long-term growth has been poor, with an annual operating profit growth rate of only 8.30%.
The company's recent financial results for June 2024 also show a decline, with a PBT (profit before tax) of -0.36 crore, which is a decrease of -205.1% compared to the previous quarter. Furthermore, its non-operating income is 112.46% of its PBT, indicating a reliance on non-operating sources for profits.

On a technical level, the stock is currently in a mildly bullish range, with the KST (Know Sure Thing) indicator being bullish since September 5, 2024. However, with a ROE (return on equity) of only 8.3, the stock's valuation is considered attractive with a price to book value of 0.5. It is worth noting that the stock is currently trading at a premium compared to its historical valuations.

Despite generating a return of 32.19% over the past year, the company's profits have fallen by -13%. This could be a cause for concern for investors. Additionally, the majority of the company's shareholders are non-institutional investors.

In conclusion, while K Z Leasing & Finance may have some positive technical indicators, its weak long-term fundamentals and recent decline in profits make it a 'Sell' according to MarketsMOJO. Investors should carefully consider these factors before making any investment decisions.