C.E. Info Systems downgraded to 'Sell' by MarketsMOJO, promoter confidence decreases

C.E. Info Systems, a midcap IT software company, has recently been downgraded to a 'Sell' by MarketsMOJO on September 9th, 2024. This downgrade is due to several technical factors, including a mildly bearish trend, deteriorating technical trend, and bearish RSI and Bollinger Band indicators. Additionally, the stock is currently trading at a fair value compared to its historical valuations and has a high price to book value of 16.5.
Furthermore, the company's promoters have decreased their stake in the company by -0.93% in the previous quarter, which may indicate a lack of confidence in the future of the business. In the past year, the stock has underperformed the market, generating a return of only 15.44% compared to the market's return of 33.83%.

However, there are some positive factors to consider. C.E. Info Systems has a high management efficiency with a ROE of 20.05% and a low debt to equity ratio of 0 times. The company has also shown healthy long-term growth with an annual net sales growth rate of 32.77%. In the last 9 consecutive quarters, the company has declared positive results, with net sales growing at 28.73% and PAT growing at 22.44%. Additionally, the company's ROCE is at its highest at 26.00%.

Overall, while C.E. Info Systems may have some positive aspects, the recent downgrade to 'Sell' by MarketsMOJO and the decrease in promoter confidence may be cause for concern for potential investors. It is important to carefully consider all factors before making any investment decisions.