MarketsMOJO Downgrades Longspur International Ventures Due to Weak Financial Performance and Expensive Valuation

Longspur International Ventures, a microcap trading company, has recently received a 'Sell' rating from MarketsMOJO on March 4th, 2024. This downgrade is based on the company's weak long-term fundamental strength, poor ability to service its debt, and low profitability per unit of shareholders' funds.
According to MarketsMOJO, Longspur International Ventures has shown a -8.83% CAGR growth in operating profits over the last 5 years, indicating a decline in its financial performance. The company's EBIT to Interest (avg) ratio is also at a concerning -0.13, suggesting that it may struggle to meet its debt obligations.

In addition, the company's Return on Equity (avg) stands at a low 0.24%, indicating a low profitability per unit of shareholders' funds. This is further supported by its expensive valuation with a price to book value of 0.6, which is higher than its historical average.

Furthermore, Longspur International Ventures has underperformed the market in the last year, generating negative returns of -6.48% while the market (BSE 500) has seen a return of 37.47%. This indicates a lack of growth and potential for the company.

On a positive note, the company has shown some improvement in its financial results in December 2023, with its PBT LESS OI(Q), PAT(Q), and EPS(Q) reaching their highest levels at Rs 0.49 cr, Rs 0.36 cr, and Rs 0.26 respectively.

Technically, the stock is currently in a mildly bullish range with the MACD being bullish since March 1st, 2024. However, the majority of the company's shareholders are non-institutional, which may indicate a lack of confidence from larger investors.

In conclusion, based on the recent downgrade by MarketsMOJO and the company's weak financial performance and expensive valuation, it may be wise for investors to consider selling their stocks in Longspur International Ventures.