Objectone Information Systems Receives 'Sell' Rating from MarketsMOJO, But Shows Strong Market Performance

Objectone Information Systems, a microcap IT software company, has recently received a 'Sell' rating from MarketsMOJO on February 5th, 2024. This downgrade is based on the company's weak long-term fundamental strength, with an average Return on Equity (ROE) of 5.75%. Additionally, Objectone's ability to service its debt is also a concern, with a poor EBIT to Interest (avg) ratio of 1.30.
In terms of recent performance, Objectone's net sales in the last quarter (Mar 23) were at a low of Rs 9.20 crore. However, the stock is currently in a mildly bullish range and its MACD and KST technical factors are also showing bullish signs.

Despite these concerns, Objectone's ROE of 11.9 makes it an attractive valuation with a 1.2 price to book value. The stock is also trading at a fair value compared to its average historical valuations. In the past year, Objectone's profits have risen by 56%, while the stock has generated a return of 44.56%. This gives the company a PEG ratio of 0.2.

It is worth noting that the majority of Objectone's shareholders are non-institutional investors. However, the company has shown market-beating performance in the long term as well as the near term. In the last year, Objectone has outperformed the BSE 500 and has also shown strong performance in the last 3 years, 1 year, and 3 months.

While Objectone Information Systems may have some concerns in terms of its fundamental strength and debt servicing ability, its attractive valuation and market-beating performance make it a stock worth keeping an eye on. Investors should do their own research and analysis before making any investment decisions.