Allsec Technologies Downgraded to 'Hold' by MarketsMOJO, Despite Positive Short-Term Results

Allsec Technologies, a smallcap BPO/ITeS company, has recently been downgraded to a 'Hold' by MarketsMOJO on September 2, 2024. This decision was based on the company's low Debt to Equity ratio, which is currently at 0 times.
However, the company has shown positive results for the last 5 consecutive quarters, with its highest operating cash flow at Rs 90.83 crore and a 40.24% growth in profits. Its net sales have also grown at a steady rate of 20.21%.

Technically, the stock is in a mildly bullish range with multiple factors such as MACD, Bollinger Band, and KST indicating a bullish trend. It also has an attractive valuation with a price to book value of 7 and a high dividend yield of 4%.

Despite its strong performance in the past year, with a return of 92.56%, the company's long-term growth has been poor. Its net sales have only grown at an annual rate of 13.09% and operating profit at 0.67% over the last 5 years.

Another concerning factor is that domestic mutual funds hold only 0% of the company, despite their capability to conduct in-depth research. This could indicate that they are not comfortable with the current price or the business of Allsec Technologies.

In conclusion, while Allsec Technologies has shown positive results in the short term, its long-term growth and lack of interest from domestic mutual funds may be a cause for concern. Investors are advised to hold onto their stocks for now and monitor the company's performance closely.