Tracxn Technologies Downgraded to 'Sell' by MarketsMOJO Due to Negative Financial Results

Tracxn Technologies, a microcap IT software company, has recently been downgraded to a 'Sell' by MarketsMOJO on September 23, 2024. This decision was based on the company's negative financial results for the past three quarters, with a significant decline in profits and a high non-operating income.
The stock is currently in a mildly bearish range, with a deteriorating technical trend since September 18, 2024. The key technical factor, MACD, has been bearish since the same date. Additionally, with a ROE of 10, the stock is considered to have a very expensive valuation, trading at a discount compared to its historical valuations.

Despite generating a return of 25.34% in the past year, the company's profits have fallen by -77%, underperforming the market (BSE 500) returns of 40.49%. This could be a cause for concern for potential investors.

On the positive side, Tracxn Technologies has shown high management efficiency with a ROE of 27.72% and a low debt to equity ratio. The company also has a healthy long-term growth rate, with an annual growth rate of 216.02% in operating profit.

It is worth noting that the majority of shareholders in Tracxn Technologies are non-institutional investors. This could potentially lead to higher volatility in the stock price.

In conclusion, while Tracxn Technologies may have some positive aspects, the recent downgrade to 'Sell' by MarketsMOJO and the company's negative financial results may make it a risky investment option. Investors are advised to carefully consider all factors before making any decisions.