B N Rathi Securities Receives 'Sell' Rating from MarketsMOJO Due to Weak ROE

B N Rathi Securities, a microcap finance and NBFC company, has recently received a 'Sell' rating from MarketsMOJO. This downgrade is based on the company's weak long-term fundamental strength, with an average Return on Equity (ROE) of 14.16%.
Despite positive results in June 2024, with the company's net sales and profits reaching their highest levels, MarketsMOJO has deemed B N Rathi Securities as a 'Sell' due to its low ROE. However, the stock is currently in a mildly bullish range and its technical factors, such as MACD and KST, are also bullish.

With a ROE of 16.7, the company has a fair valuation with a 3 Price to Book Value. In the past year, the stock has generated a return of 118.09%, while its profits have risen by 43.9%. This gives the company a PEG ratio of 0.9, indicating a stable financial performance.

The majority of shareholders in B N Rathi Securities are non-institutional investors. Despite this, the company has shown market-beating performance in the long term, outperforming the BSE 500 index in the last 3 years, 1 year, and 3 months.

While MarketsMOJO has downgraded the stock to 'Sell', it is important to note that this is based on the company's current financial strength and not on any future potential or expert opinions. Investors should carefully consider all factors before making any investment decisions.