Objectone Information Systems Receives 'Sell' Rating

Objectone Information Systems, a microcap IT software company, has recently received a 'Sell' rating from MarketsMOJO on December 19, 2023. This downgrade is based on the company's weak long-term fundamental strength, with an average Return on Equity (ROE) of 5.75%. Additionally, the company's ability to service its debt is also a concern, with a poor EBIT to Interest (avg) ratio of 1.30.
In the most recent quarter, Objectone Information Systems reported flat results with net sales at Rs 9.20 crore, the lowest in the past year. However, there are some bullish factors for the stock, such as being in a mildly bullish range and showing positive indicators like MACD, Bollinger Band, KST, and OBV.

Despite these positive indicators, the stock is trading at a fair value compared to its average historical valuations, with an attractive ROE of 11.9 and a price to book value of 1.4. Over the past year, the stock has generated a return of 31.40%, while its profits have risen by 56%. The PEG ratio of the company is also at a low 0.2.

The majority of shareholders in Objectone Information Systems are non-institutional investors. However, the company has consistently generated returns over the last 3 years, outperforming the BSE 500 index in each of the last 3 annual periods. While the stock may not be recommended for investment at this time, it is important for investors to keep an eye on the company's performance in the future.