Real Touch Finance Receives 'Sell' Rating from MarketsMOJO Due to Weak Fundamentals.

Real Touch Finance, a microcap finance company, has recently received a 'Sell' rating from MarketsMOJO. This downgrade is due to the company's weak long-term fundamental strength, with an average return on equity (ROE) of only 4.34%. Additionally, the stock is currently trading at a premium compared to its historical valuations, with a price to book value of 2.1.
Despite generating a return of 130.15% in the past year, the company's profits have actually fallen by -12.1%. This raises concerns about the sustainability of the stock's performance. However, Real Touch Finance has declared positive results for the last 7 consecutive quarters, with net sales growing at 23.10% and PBDIT (Q) reaching a high of Rs 4.80 cr.

From a technical standpoint, the stock is currently in a mildly bullish range, with both MACD and KST technical factors showing a bullish trend. The majority shareholders of Real Touch Finance are the promoters, indicating their confidence in the company's future prospects.

In the last 3 years, Real Touch Finance has consistently delivered returns, outperforming the BSE 500 index in each of the last 3 annual periods. However, with the recent downgrade from MarketsMOJO and the company's weak fundamental strength, investors may want to approach this stock with caution.