We Win downgraded to 'Sell' by MarketsMOJO due to weak long-term fundamentals

We Win, a microcap company in the BPO/ITeS industry, has recently been downgraded to a 'Sell' by MarketsMOJO on August 1, 2024. This decision was based on the company's weak long-term fundamental strength, with a 11.06% CAGR growth in operating profits over the last 5 years. In comparison to the market (BSE 500) which has generated returns of 37.25% in the last year, We Win has significantly underperformed with negative returns of -29.03%.
One of the positive factors for the company is its recent results in March 2024, with a 42.50% growth in net sales and the highest PBDIT and PBT LESS OI in the quarter. However, the technical trend for the stock is currently sideways, indicating no clear price momentum. The stock's MACD and KST technical factors are also sideways, further supporting this trend.

On the valuation front, We Win has an attractive ROCE of 13.8 and a low enterprise value to capital employed ratio of 2.9. However, the stock is currently trading at a premium compared to its average historical valuations. In the past year, while the stock has generated negative returns, its profits have increased by 3%, resulting in a high PEG ratio of 10.5.

It is worth noting that the majority shareholders of We Win are the promoters themselves. This may indicate a lack of external investor interest in the company. Overall, with its recent downgrade to 'Sell' and mixed financial performance, investors may want to carefully consider their options before investing in We Win.