Nettlinx Receives 'Sell' Rating from MarketsMOJO, But Shows Positive Results and Technical Indicators

Nettlinx, a microcap IT software company, has recently received a 'Sell' rating from MarketsMOJO on February 12, 2024. This downgrade is based on the company's weak long-term fundamental strength, with a -142.20% CAGR growth in operating profits over the last 5 years. Additionally, the company has a low profitability per unit of shareholders' funds, with a return on equity (avg) of 5.61%.
Furthermore, Nettlinx has a very expensive valuation with a 4.5 enterprise value to capital employed and is currently trading at a discount compared to its average historical valuations. Despite generating a return of 53.49% in the past year, the company's profits have only risen by 520%, resulting in a PEG ratio of 0.1.

In addition to these factors, there has been a decrease in promoter confidence as they have reduced their stake in the company by -2.09% over the previous quarter. This could signify a lack of confidence in the future of the business.

However, there are some positive aspects to consider. Nettlinx has declared positive results for the last 3 consecutive quarters, with a higher PAT (HY) at Rs 2.86 crore and a 27.9% growth in net sales (Q). The stock is also technically in a mildly bullish range, with multiple factors such as Bollinger Band, KST, and OBV indicating a bullish trend.

Moreover, the company has consistently outperformed BSE 500 in the last 3 annual periods, generating consistent returns for investors. Overall, while Nettlinx may have some concerning factors, it is important to consider all aspects before making any investment decisions.