MarketsMOJO Downgrades Shardul Securities to 'Sell' Due to Weak Fundamentals and Lack of Investor Interest

Shardul Securities, 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 2.67% and poor long-term growth in Net Sales, which has only grown by an annual rate of 78.84%.
One of the concerning factors for the company is that despite its size, domestic mutual funds hold only 0% of the company. This could indicate that either they are not comfortable with the price or the business itself.

However, the company has declared positive results for the last 6 consecutive quarters, with its operating cash flow at its highest at Rs 19.86 Cr and net sales at Rs 180.29 cr. Its profits have also increased by 402.2% in the past year, resulting in a PEG ratio of 0.

Technically, the stock is in a mildly bullish range, with its MACD and KST technical factors also showing a bullish trend. It also has a fair valuation with a 1.2 price to book value and has consistently outperformed BSE 500 in the last 3 annual periods.

In conclusion, while Shardul Securities may have shown strong returns in the past year, its weak long-term fundamentals and lack of interest from domestic mutual funds make it a 'Sell' according to MarketsMOJO. Investors should carefully consider these factors before making any investment decisions.