Tourism Finance Corporation of India Downgraded to 'Sell' by MarketsMOJO

Tourism Finance Corporation of India, a smallcap finance company, has recently been downgraded to a 'Sell' by MarketsMOJO on 2024-03-13. This decision was based on poor long-term growth, with net sales only increasing by 1.87% annually and operating profit at 1.29%. In addition, the company's recent financial results for December 2022 showed a decline in profits and net sales.
The company's return on equity (ROE) is at 10.1, making its valuation very expensive with a price to book value of 1.8. The stock is also trading at a premium compared to its historical valuations. Despite generating a return of 156.81% in the past year, the company's profits have only increased by 11.8%, resulting in a PEG ratio of 1.5.

On a technical level, the stock is currently in a mildly bullish range, with both the MACD and KST technical factors showing a bullish trend. Institutional investors have also shown an increasing interest in the company, with their stake increasing by 0.88% in the previous quarter. These investors have better resources and capabilities to analyze the fundamentals of companies, making their participation a positive sign for the company.

In the long term, Tourism Finance Corporation of India has shown market-beating performance, outperforming the BSE 500 index in the last 3 years, 1 year, and 3 months. However, based on the current financial and technical indicators, MarketsMOJO has downgraded the stock to a 'Sell'. Investors are advised to carefully consider these factors before making any investment decisions.