Ceejay Finance Downgraded to 'Sell' by MarketsMOJO Due to Weak Fundamentals and Lackluster Financial Results

Ceejay Finance, a microcap finance company, has recently been downgraded to a 'Sell' by MarketsMOJO on February 20, 2024. This decision was based on the company's weak long-term fundamental strength, with an average Return on Equity (ROE) of 10.00%. Additionally, the company has shown poor long-term growth, with net sales growing at an annual rate of 5.46% and operating profit at 2.62%.
The company's recent financial results for December 2023 have also been lackluster, with its cash and cash equivalents at the lowest level of Rs 1.09 crore and PBDIT(Q) and PBT LESS OI(Q) also at their lowest levels of Rs 2.65 crore and Rs 1.62 crore, respectively.

On a positive note, the stock is currently in a bullish range and its technical trend has improved since January 5, 2024, generating a return of 12.93% since then. Multiple technical factors, such as MACD, Bollinger Band, and KST, also indicate a bullish trend for the stock.

However, with an ROE of 9.9, the stock is currently fairly valued with a price to book value of 1.1. It is also trading at a premium compared to its average historical valuations. While the stock has generated a return of 95.76% in the past year, its profits have only risen by 7.7%, resulting in a PEG ratio of 1.4.

The majority shareholders of Ceejay Finance are its promoters, indicating their confidence in the company's performance. In fact, the stock has not only outperformed the BSE 500 index in the last year, but also in the last 3 years, 1 year, and 3 months, showcasing its market-beating performance in the long term as well as the near term.