Step Two Corporation Receives 'Sell' Rating from MarketsMOJO Due to Weak Long-Term Fundamentals

Step Two Corporation, a microcap company in the finance/NBFC industry, has recently received a 'Sell' rating from MarketsMOJO on March 11, 2024. This downgrade is based on the company's weak long-term fundamental strength, with an average Return on Equity (ROE) of 3.49% and poor long-term growth in operating profit.
Despite positive results in December 2023, with the highest PAT(Q) at Rs 0.60 cr and EPS(Q) at Rs 1.30, the stock is currently in a Mildly Bullish range. However, there are multiple bullish factors for the stock, such as MACD, KST, and DOW.

With a ROE of 22.8, the stock is currently trading at a fair valuation with a 2.4 Price to Book Value. It is also trading at a fair value compared to its average historical valuations. Over the past year, the stock has generated a return of 122.26%, while its profits have risen by 117%. The PEG ratio of the company is 0, indicating a fair valuation.

The majority shareholders of Step Two Corporation are the promoters, and the company has consistently generated returns over the last 3 years. In addition to its impressive 122.26% return in the last year, the stock has also outperformed BSE 500 in each of the last 3 annual periods.

While the stock may have some bullish factors, the recent downgrade by MarketsMOJO highlights the company's weak long-term fundamentals and lack of growth potential. Investors should carefully consider these factors before making any investment decisions.