AGI Infra Downgraded to 'Sell' by MarketsMOJO Due to Negative Results and Overvaluation

AGI Infra, a smallcap real estate company, has recently been downgraded to a 'Sell' by MarketsMOJO on September 2, 2024. This downgrade is based on the company's negative results in June 2024, with an interest growth of 86.82% at Rs 5.81 crore and a ROCE of 20.14%, the lowest in the industry. Additionally, the company's debt-equity ratio is at its highest at 0.61 times.
Furthermore, with a ROCE of 24.4, AGI Infra is currently overvalued with an expensive valuation of 4.7 Enterprise value to Capital Employed. The stock is also trading at a premium compared to its average historical valuations. Despite generating a return of 57.54% in the past year, the company's profits have only risen by 5.4%, resulting in a high PEG ratio of 3.7.

However, there are some positive factors to consider. AGI Infra has shown healthy long-term growth with an annual net sales growth rate of 36.52%. Technically, the stock is in a mildly bullish range with its MACD and KST technical factors also showing a bullish trend.

In terms of market performance, AGI Infra has outperformed the market (BSE 500) with a return of 57.54% in the last year, compared to the market's return of 38.49%. While the stock may have potential for long-term growth, current factors suggest a 'Sell' recommendation. Investors should carefully consider all factors before making any investment decisions.