MarketsMOJO Downgrades Jindal Capital to 'Sell' Due to Weak Fundamentals and Expensive Valuation

Jindal Capital, a microcap finance company, has recently been downgraded to a 'Sell' by MarketsMOJO on October 3rd, 2024. This decision was based on several factors, including weak long-term fundamental strength with an average Return on Equity (ROE) of 2.40% and poor long-term growth with a -18.53% annual growth rate in Net Sales.
Additionally, the stock is currently trading at an expensive valuation with a Price to Book Value of 4, which is higher than its historical average. However, it is worth noting that the stock has generated a return of 48.93% in the past year, with profits increasing by 131%. The PEG ratio of the company is also at 0, indicating a fair valuation.

On a positive note, Jindal Capital has shown strong results in the quarter ending June 2024, with its PBDIT (Q) at Rs 0.90 cr, PBT LESS OI (Q) at Rs 0.79 cr, and PAT (Q) at Rs 0.79 cr. The stock is also currently in a mildly bullish range, with its MACD and KST technical factors also showing bullish signals.

The majority shareholders of Jindal Capital are its promoters, and the company has consistently generated returns over the last 3 years. In fact, it has outperformed the BSE 500 index in each of the last 3 annual periods. However, considering the current market conditions and the company's financial performance, MarketsMOJO has downgraded its stock call on Jindal Capital to 'Sell'.