MarketsMOJO Downgrades Secmark Consultancy to 'Sell' Due to Poor Growth and Risky Financials

Secmark Consultancy, a microcap IT software company, has recently been downgraded to a 'Sell' by MarketsMOJO on April 18, 2024. This decision was based on the company's poor long-term growth, flat results in December 2023, and risky negative EBITDA.
According to MarketsMOJO, Secmark Consultancy has shown a negative annual growth rate of -271% in operating profit over the last 5 years, indicating a lack of long-term growth potential. Additionally, the company's results in December 2023 were flat, further raising concerns about its performance.

The stock is also considered risky due to its negative EBITDA and trading at a higher risk compared to its average historical valuations. In the past year, while the stock has generated a return of 9.62%, its profits have fallen by -298%, indicating a decline in profitability.

Furthermore, Secmark Consultancy has underperformed the market in the last 1 year, with a return of only 9.62% compared to the market's return of 35.47% (BSE 500). This further supports the 'Sell' rating given by MarketsMOJO.

Other factors to consider include the company's low debt to equity ratio of 0.08 times, which is below the industry average. On a technical level, the stock is currently in a mildly bullish range, with multiple factors such as MACD, Bollinger Band, and KST indicating a bullish trend.

It is also worth noting that the majority shareholders of Secmark Consultancy are the promoters, which may impact the company's decision-making and future performance.

In conclusion, based on the analysis by MarketsMOJO, it is recommended to approach Secmark Consultancy's stock with caution and consider selling it due to its poor long-term growth, flat results, and risky financials.