MarketsMOJO Downgrades Almondz Global Securities to 'Sell' Due to Weak Fundamentals and Expensive Valuation

Almondz Global Securities, a microcap finance company, has recently been downgraded to a 'Sell' by MarketsMOJO on 2024-09-23. This decision was based on the company's weak long-term fundamental strength, with an average Return on Equity (ROE) of 7.23%. Additionally, the company has shown poor long-term growth, with Net Sales growing at an annual rate of 12.52% and Operating profit at 5.91%.
One of the main reasons for the 'Sell' rating is the company's expensive valuation, with a Price to Book Value of 2.3 and a ROE of 8.5. This is significantly higher than its average historical valuations. Furthermore, while the stock has generated a return of 114.60% in the past year, its profits have only risen by 33.4%, resulting in a PEG ratio of 0.8.

Another concerning factor is that despite its size, domestic mutual funds hold only 0% of the company. This could indicate that they are not comfortable with the current price or the business itself.

On a positive note, Almondz Global Securities has declared positive results for the last 6 consecutive quarters, with NET SALES(HY) growing at 69.97% and PBT LESS OI(Q) at its highest at Rs 6.24 cr. The stock is also technically in a mildly bullish range, with multiple factors such as MACD, KST, and DOW being bullish.

However, despite its market-beating performance in the long term and near term, with the stock outperforming BSE 500 in the last 3 years, 1 year, and 3 months, MarketsMOJO has still downgraded it to a 'Sell' due to its weak fundamentals and expensive valuation. Investors should carefully consider these factors before making any investment decisions regarding Almondz Global Securities.