Supra Pacific Management Consultancy Downgraded to 'Sell' by MarketsMOJO Due to Weak Fundamentals and Overvaluation

Supra Pacific Management Consultancy, a microcap company in the finance/NBFC industry, has recently been downgraded to a 'Sell' by MarketsMOJO on August 5th, 2024. This decision was based on the company's weak long-term fundamental strength, with an average Return on Equity (ROE) of 3.20%. Additionally, the stock is currently trading at a premium compared to its historical valuations, with a price to book value of 1.6.
Despite the stock's impressive return of 75.96% in the past year, its profits have only risen by 42%, resulting in a high PEG ratio of 6.4. This indicates that the stock may be overvalued and not a good investment option for the long term.

In terms of other factors, Supra Pacific Management Consultancy has declared positive results for the last 6 consecutive quarters, with a significant growth in net sales of 113.65% at Rs 15.81 crore. Its PBDIT (profit before depreciation, interest, and taxes) for the quarter is also at its highest at Rs 4.24 crore, while its PAT (profit after tax) is at Rs 0.46 crore.

Technically, the stock is currently in a mildly bullish range, with its MACD and KST technical factors also showing a bullish trend. However, it is important to note that the stock's performance has been significantly higher than the market (BSE 500) returns of 32.89%, indicating a potential risk for investors.

In conclusion, while Supra Pacific Management Consultancy has shown strong market-beating performance in the past year, its current valuation and weak fundamental strength make it a 'Sell' according to MarketsMOJO. Investors should carefully consider these factors before making any investment decisions.