Ontic Finserve Receives 'Sell' Rating from MarketsMOJO Due to Weak Long-Term Fundamentals and High Risk

Ontic Finserve, a microcap finance company, has recently received a 'Sell' rating from MarketsMOJO. This downgrade is based on the company's weak long-term fundamental strength, with an average Return on Equity (ROE) of 3.19%. Additionally, the company has shown poor long-term growth, with a decline in net sales by an annual rate of -13.55% and operating profit at -197.48%.
One of the major concerns for Ontic Finserve is its negative EBITDA, making it a risky stock to invest in. The stock is also trading at a higher risk compared to its average historical valuations. Despite generating a return of 14.49% in the past year, the company's profits have only risen by 96.8%.

On a positive note, Ontic Finserve reported strong results in September 2024, with its PBDIT(Q) at the highest of Rs 1.38 crore and PAT(Q) at the highest of Rs 1.04 crore. However, the majority of the company's shareholders are non-institutional investors, which may raise concerns for potential investors.

From a technical standpoint, the stock is currently in a bullish range, with its technical trend improving from Mildly Bullish on 18-Nov-24. Since then, the stock has generated a return of 6.76%. Multiple factors, such as MACD, Bollinger Band, KST, and OBV, also indicate a bullish trend for the stock.

In conclusion, while Ontic Finserve may have shown positive results in the recent quarter, its weak long-term fundamentals and high risk make it a 'Sell' according to MarketsMOJO. Investors should carefully consider these factors before making any investment decisions.