MarketsMOJO downgrades We Win with 'Sell' rating due to weak fundamentals and sideways technical trend

We Win, a microcap BPO/ITeS company, has recently received a 'Sell' rating from MarketsMOJO on July 1st, 2024. This downgrade is based on the company's weak long-term fundamental strength, with only an 11.06% CAGR growth in operating profits over the last 5 years.
In terms of other factors, We Win did show positive results in March 2024, with its net sales reaching a high of Rs 19.38 crore and PBDIT at Rs 1.85 crore. However, its technical trend is currently sideways, indicating no clear price momentum. The stock's technical trend has also deteriorated since July 1st, 2024, generating a -1.99% return since then. Additionally, the Bollinger Band has been sideways since July 1st, 2024.

Despite these factors, We Win does have an attractive valuation with a ROCE of 13.8 and a 2.9 enterprise value to capital employed. However, the stock is currently trading at a premium compared to its average historical valuations. In the past year, the stock has generated a return of 85.30%, but its profits have only risen by 3%, resulting in a PEG ratio of 10.5.

It is worth noting that the majority shareholders of We Win are the promoters, which may have influenced the company's performance. However, the stock has still outperformed the market (BSE 500) with a return of 85.30% in the last year, compared to the market's return of 37.64%.

In conclusion, while We Win may have shown positive results in the past, its weak long-term fundamental strength and current technical trend suggest a 'Sell' rating from MarketsMOJO. Investors should carefully consider these factors before making any decisions regarding this microcap BPO/ITeS company.