Tejnaksh Healthcare Receives 'Sell' Rating from MarketsMOJO Due to Weak Fundamentals and Bearish Trend.

Tejnaksh Healthcare, a microcap company in the hospital and healthcare services industry, has recently received a 'Sell' rating from MarketsMOJO. This downgrade is based on several factors, including weak long-term fundamental strength and a mildly bearish technical trend.
One of the main reasons for the 'Sell' rating is the company's -2.60% CAGR growth in operating profits over the last 5 years. This indicates a lack of consistent growth and profitability. Additionally, the technical trend has deteriorated from mildly bullish to mildly bearish, with the Bollinger Band being bearish since October 21, 2024.

Furthermore, Tejnaksh Healthcare has consistently underperformed against the benchmark BSE 500 index over the last 3 years. In the last 1 year, the stock has generated -20.07% returns, further highlighting its underperformance.

On a positive note, the company did report higher profits in June 2024, with a PAT (9M) of Rs 1.64 Cr and a DEBTORS TURNOVER RATIO (HY) of 23.42 times, which is the highest in the industry. However, with a ROE of only 7.6, the stock is currently trading at a very attractive valuation with a price to book value of 2.1. It is also trading at a discount compared to its average historical valuations.

Despite the recent negative performance of the stock, its profits have actually increased by 73.4% in the past year, resulting in a low PEG ratio of 0.3. It is worth noting that the majority shareholders of Tejnaksh Healthcare are the promoters themselves.

In conclusion, while Tejnaksh Healthcare may have some positive aspects, the overall picture suggests a 'Sell' rating from MarketsMOJO. Investors should carefully consider these factors before making any investment decisions.