A.K.Capital Services downgraded to 'Sell' by MarketsMOJO due to weak fundamentals and lack of interest from mutual funds

A.K.Capital Services, a microcap finance company, has recently been downgraded to a 'Sell' by MarketsMOJO. This decision was based on the company's weak long-term fundamental strength, with an average Return on Equity (ROE) of 10.53%. Additionally, the company has shown poor long-term growth, with net sales growing at an annual rate of only 3.95% and operating profit at -0.11%.
In the most recent quarter, the company's net sales were at their lowest at Rs 114.96 crore. Despite its small size, A.K.Capital Services has not attracted much interest from domestic mutual funds, with them holding only 0% of the company. This could be a sign that they are not comfortable with the company's current price or its business.

On a positive note, the stock is currently in a bullish range and its technical trend has improved from mildly bullish to bullish on 30-Sep-24. Multiple technical factors, such as MACD, Bollinger Band, and KST, also indicate a bullish trend for the stock.

In terms of valuation, A.K.Capital Services has a fair valuation with a price to book value of 0.8 and a PEG ratio of 1.7. This suggests that the stock is trading at a fair value compared to its historical valuations. However, while the stock has generated a return of 53.74% in the last year, its profits have only risen by 3.4%.

Overall, A.K.Capital Services has shown market-beating performance with a return of 53.74% in the last year, outperforming the market (BSE 500) returns of 39.48%. However, with its weak long-term fundamentals and lack of interest from domestic mutual funds, MarketsMOJO has downgraded the stock to a 'Sell'. Investors should carefully consider these factors before making any investment decisions.