Qgo Finance Receives 'Sell' Rating from MarketsMOJO Due to Weak Fundamentals

Qgo Finance, 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 7.99%.
Despite declaring positive results for the last 8 consecutive quarters, with a net sales growth of 20.83% and a PBDIT of Rs 3.21 cr, Qgo Finance's stock is technically in a mildly bullish range. However, there are multiple factors that are bullish for the stock, such as MACD, KST, and DOW.

At a ROE of 15.1, the stock has a fair valuation with a price to book value of 2.5. However, it is currently trading at a premium compared to its average historical valuations. In the past year, the stock has generated a return of 32.32%, while its profits have risen by 63.2%. The PEG ratio of the company is 0.3, indicating a potential undervaluation.

It is worth noting that the majority shareholders of Qgo Finance are the promoters themselves. This may raise concerns about potential conflicts of interest and could be a factor in the downgrade by MarketsMOJO. As always, investors are advised to conduct their own research and make informed decisions before investing in any stock.