MarketsMOJO Downgrades Arunis Abode to 'Sell' Due to Weak Fundamentals and Overvaluation.

MarketsMOJO has downgraded its stock call on Arunis Abode, a microcap company in the finance/NBFC industry, to 'Sell' on February 8, 2024. This decision was based on several factors, including weak long-term fundamental strength with an average return on equity (ROE) of 3.43% and poor long-term growth with an annual operating profit growth rate of -5.84%. Additionally, the company's results for December 2023 were flat.
On a technical level, the stock is currently in a mildly bullish range, with both the MACD and KST technical factors also showing bullish signals. However, despite these positive technical indicators, the stock's ROE of 16.9 suggests that it is currently overvalued. This is further supported by the fact that the stock is trading at a discount compared to its average historical valuations.

In the past year, Arunis Abode's stock has generated a return of 42.02%, while its profits have risen by 76%. This has resulted in a PEG ratio of 0.1, indicating that the stock may be overvalued. The majority shareholders of the company are the promoters.

Despite consistent returns over the last 3 years, with the stock outperforming the BSE 500 index in each of the last 3 annual periods, MarketsMOJO has deemed it a 'Sell' due to the aforementioned factors. Investors should carefully consider these factors before making any decisions regarding Arunis Abode's stock.