MarketsMOJO Downgrades TCI Finance to 'Sell' Due to Weak Fundamentals and Non-Institutional Shareholders

TCI Finance, a microcap finance company, has recently been downgraded to a 'Sell' by MarketsMOJO on October 1st, 2024. This decision was based on the company's weak long-term fundamental strength, with a negative book value and poor growth in net sales and operating profit.
In the latest quarter, TCI Finance reported flat results with its PBDIT and PBT LESS OI at the lowest levels of Rs -0.46 crore. The EPS also saw a decline, reaching its lowest at Rs -0.39. These factors contribute to the company's overall negative outlook.

On a positive note, the stock is currently in a mildly bullish range and its MACD and KST technical factors are also bullish. However, with a ROE of 0.9, the stock is considered to have an attractive valuation with a -0.3 price to book value. It is also trading at a fair value compared to its average historical valuations.

Despite the recent market beating performance, with a return of 381.43% in the last year, TCI Finance's majority shareholders are non-institutional investors. This may raise concerns for potential investors.

In conclusion, while TCI Finance has shown impressive returns in the past year, its weak long-term fundamentals and majority non-institutional shareholders may make it a risky investment. MarketsMOJO's downgrade to 'Sell' serves as a cautionary reminder for investors to carefully consider all factors before making any investment decisions.