MarketsMOJO rates Capital Trade Links as 'Sell' due to expensive valuation and weak fundamentals

Capital Trade Links, a microcap finance company, has recently received a 'Sell' rating from MarketsMOJO. The company's long-term fundamental strength has been deemed weak, with an average Return on Equity (ROE) of 6.46%. Additionally, the stock is currently trading at a premium compared to its historical valuations, with a Price to Book Value of 6.6.
One of the main reasons for the 'Sell' rating is the company's expensive valuation, with an ROE of 25.1. This is significantly higher than the industry average and indicates that the stock may be overvalued. Furthermore, while the stock has generated a return of 93.12% in the past year, its profits have only risen by 221.9%, resulting in a low PEG ratio of 0.1.

On the positive side, Capital Trade Links has consistently declared positive results for the last 10 consecutive quarters. Its net sales for the last 9 months have grown by 50.50%, reaching Rs 25.84 crore, while its profits have also increased to Rs 9.69 crore. The stock is also technically in a mildly bullish range, with multiple factors such as MACD, KST, and OBV indicating a bullish trend.

However, there are some concerns regarding the company's promoter holding, which has decreased this quarter and now stands at 37.02%. This could potentially impact the company's decision-making and future growth. On the other hand, Capital Trade Links has consistently generated strong returns over the last 3 years, outperforming the BSE 500 index in each of the last 3 annual periods.

In conclusion, while Capital Trade Links has shown strong performance in the past year, its expensive valuation and weak long-term fundamental strength have led to a 'Sell' rating from MarketsMOJO. Investors should carefully consider these factors before making any investment decisions.