Variman Global Enterprises Receives 'Sell' Rating from MarketsMOJO Due to Weak Fundamentals and Expensive Valuation

Variman Global Enterprises, a microcap finance company, has recently received a 'Sell' rating from MarketsMOJO on April 22, 2024. This downgrade is based on the company's weak long-term fundamental strength, as it has been operating at a loss and has shown poor growth in operating profit.
In addition, Variman Global Enterprises has a very expensive valuation with a price to book value of 15.7 and a return on equity of only 6.1. The stock is currently trading at a premium compared to its historical valuations. Despite generating a return of 83.30% in the past year, the company's profits have only increased by 2.8%.

However, there are some positive factors for the company. In December 2023, Variman Global Enterprises reported higher profits of Rs 1.72 crore and a growth of 24.32% in net sales. The stock is also technically in a mildly bullish range, with indicators such as MACD, KST, and OBV showing bullish signals.

Moreover, institutional investors have shown an increasing interest in the company, with a 1.48% increase in their stake in the previous quarter. These investors have better resources and capabilities to analyze the fundamentals of companies, making their participation a positive sign for Variman Global Enterprises.

Despite the recent downgrade, Variman Global Enterprises has a track record of market-beating performance in the long term as well as the near term. Along with outperforming the BSE 500 index in the last 3 years, 1 year, and 3 months, the stock has also generated a significant return of 83.30% in the past year.