Brijlaxmi Leasing & Finance downgraded to 'Sell' by MarketsMOJO due to weak fundamentals

Brijlaxmi Leasing & Finance, a microcap finance company, has recently been downgraded to a 'Sell' by MarketsMOJO on May 13, 2024. This decision was based on weak long-term fundamental strength, with an average Return on Equity (ROE) of 2.14%. Additionally, the company's results for December 2023 were flat.
Despite being in a mildly bullish range, the stock has multiple bullish factors such as MACD, Bollinger Band, and KST. However, with an ROE of 35.9, the stock is currently trading at an attractive valuation with a price to book value of 2. This is a discount compared to its average historical valuations.

In the past year, Brijlaxmi Leasing & Finance has generated a return of 94.64%, outperforming the market (BSE 500) returns of 31.64%. This is a significant achievement for a microcap company in the finance industry. The company's profits have also risen by 105% in the same period.

It is worth noting that the majority of the company's shareholders are non-institutional investors. This indicates a strong interest from retail investors in the stock. Brijlaxmi Leasing & Finance has shown market-beating performance and has the potential to continue its growth trajectory in the future. However, it is important to consider the current weak fundamental strength before making any investment decisions.