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

Qgo Finance, a microcap finance company, has recently received a 'Sell' rating from MarketsMOJO on 2024-09-23. This downgrade is based on the company's weak long-term fundamental strength, with an average Return on Equity (ROE) of 7.99%. In the past year, the stock has underperformed the market, generating a return of 29.68% compared to the market's 40.49% return.
One of the main factors contributing to this downgrade is the company's consistently positive financial results for the last 10 quarters. Qgo Finance has shown growth in its net sales, with a 23.23% increase in the last half year, and its PBDIT and PBT LESS OI have also reached their highest levels at Rs 3.68 cr and Rs 1.17 cr respectively.

Technically, the stock is currently in a mildly bullish range, with both its MACD and KST technical factors showing a bullish trend. However, with an ROE of 18.6, the stock is fairly valued with a price to book value of 2.7. It is also trading at a premium compared to its historical valuations.

Despite the stock's 29.68% return in the past year, its profits have only risen by 76.6%, resulting in a low PEG ratio of 0.2. This indicates that the stock may be overvalued and not a good investment option at this time.

It is worth noting that the majority shareholders of Qgo Finance are its promoters, which may have influenced the company's consistently positive financial results. Overall, with its weak long-term fundamentals and premium valuation, MarketsMOJO has downgraded Qgo Finance to a 'Sell' rating.