MarketsMOJO downgrades Keynote Financial Services due to weak long-term fundamentals

Keynote Financial Services, a microcap finance company, has recently received a 'Sell' rating from MarketsMOJO. This downgrade is based on the company's weak long-term fundamental strength, with an average Return on Equity (ROE) of 5.81% and poor long-term growth with an annual operating profit growth rate of -1.02%.
Despite declaring positive results for the last 5 consecutive quarters, the company's PAT (HY) has only grown by 234.97% and NET SALES (HY) by 56.72%. While the stock is currently in a mildly bullish range and its MACD and KST technical factors are also bullish, its ROE of 21.5 indicates a fair valuation with a 1.4 price to book value. However, the stock is currently trading at a premium compared to its average historical valuations.

The company's majority shareholders are its promoters, and it has shown market-beating performance in both the long-term and near-term. In the past year, the stock has generated a return of 130.60%, while its profits have risen by 213.1%. This has resulted in a PEG ratio of 0, indicating that the stock may be overvalued.

Investors should take note of the recent downgrade and consider the company's weak long-term fundamentals before making any investment decisions. While the stock has shown strong performance in the past year, it is important to also consider its long-term growth potential and valuation.