ATV Projects India Receives 'Sell' Rating from MarketsMOJO, Weak Fundamentals and Flat Growth Indicated

ATV Projects India, a microcap engineering company, has recently received a 'Sell' rating from MarketsMOJO on July 2, 2024. This downgrade is based on the company's weak long-term fundamental strength, with a 8.54% CAGR growth in net sales over the last 5 years. Additionally, the company has a low profitability per unit of shareholders' funds, with a return on equity (avg) of 1.71%.
Furthermore, the company's results for March 2024 have been flat, indicating a lack of growth. However, the stock is currently in a bullish range and has shown improvement in its technical trend since April 29, 2024, generating a return of 25.54% since then. Multiple technical factors, such as MACD, Bollinger Band, KST, and OBV, are also bullish for the stock.

In terms of valuation, ATV Projects India has a fair valuation with a ROCE of 2.6 and an enterprise value to capital employed ratio of 0.8. The stock is currently trading at a discount compared to its average historical valuations. Despite generating a return of 214.25% in the past year, the company's profits have only risen by 27.2%, resulting in a PEG ratio of 0.8.

The majority of the company's shareholders are non-institutional investors. However, ATV Projects India has shown market-beating performance in both the long-term and near-term, outperforming BSE 500 in the last 3 years, 1 year, and 3 months. With this recent downgrade, investors may want to carefully consider their position in ATV Projects India.