Aurionpro Solutions downgraded to 'Hold' by MarketsMOJO due to mixed financial and technical trends.

Aurionpro Solutions, a smallcap IT software company, has recently been downgraded to a 'Hold' by MarketsMOJO on March 14, 2024. This decision was based on the company's current financial performance and technical trends.
One of the main reasons for the downgrade is the company's strong ability to service debt, with a low Debt to EBITDA ratio of 0.56 times. This indicates a stable financial position and reduces the risk for investors.

In terms of financial results, Aurionpro Solutions declared outstanding results in December 2023 with a growth in net profit of 11.41%. The company has also consistently delivered positive results for the last 11 consecutive quarters. Its ROCE (HY) is the highest at 23.69%, while its net sales (Q) and operating profit to interest (Q) are also at their highest levels.

However, the technical trend for the stock is currently sideways, indicating no clear price momentum. The trend has also deteriorated from mildly bullish on March 14, 2024, and has generated a return of 1.85% since then.

In terms of valuation, Aurionpro Solutions has a fair valuation with a price to book value of 8.3 and an ROE of 19.9. The stock is currently trading at a discount compared to its average historical valuations. While it has generated a return of 506.41% in the past year, its profits have only risen by 39.9%, resulting in a PEG ratio of 1.3.

On a positive note, the company has consistently delivered returns over the last 3 years and has outperformed BSE 500 in each of the last 3 annual periods. However, its long-term growth has been poor, with net sales growing at an annual rate of 11.64% over the last 5 years.

Investors should also be aware that 26.54% of promoter shares are pledged, which could put additional downward pressure on the stock prices in falling markets. Overall, while Aurionpro Solutions has shown strong financial performance and consistent returns, the current technical trend and long-term growth may warrant a 'Hold' rating for now.