Central Bank of India downgraded to 'Sell' by MarketsMOJO on September 27, 2024.

Central Bank of India, one of the largest public banks in India, has recently been downgraded to a 'Sell' by MarketsMOJO on September 27, 2024. This decision was based on various technical and financial factors.
Firstly, the stock is currently in a Mildly Bearish range and the technical trend has deteriorated from Mildly Bullish on September 27, 2024. Additionally, the key technical factor - KST (Know Sure Thing) has been Bearish since the same date.

Moreover, with a ROA (Return on Assets) of 0.7, the stock is considered to have an expensive valuation with a 1.6 Price to Book Value. However, it is trading at a fair value compared to its average historical valuations. In the past year, the stock has generated a return of 18.05%, while its profits have risen by 70.5%. This results in a PEG (Price/Earnings to Growth) ratio of 0.2, indicating a potential overvaluation.

Another concerning factor is that despite being a largecap company, domestic mutual funds hold only 1.69% of the company. This could signify that they are not comfortable with the current price or the business itself. Domestic mutual funds have the capability to conduct in-depth research on companies, making their small stake a cause for concern.

Furthermore, Central Bank of India has underperformed the market in the last year, with a return of 18.05% compared to the market's (BSE 500) return of 40.53%.

On a positive note, the company has shown healthy long-term growth with a net profit growth rate of 22.45% annually. It has also declared positive results for the last 12 consecutive quarters, with the highest PAT (Profit After Tax) of Rs 879.94 crore, lowest NET NPA (Non-Performing Assets) of 0.73%, and highest NII (Net Interest Income) of Rs 3,547.73 crore.

In conclusion, based on the technical and financial factors, MarketsMOJO has downgraded the stock call on Central Bank of India to 'Sell'. Investors should carefully consider these factors before making any investment decisions.