Chartered Capital & Investment Downgraded to 'Sell' by MarketsMOJO: What Investors Need to Know

Chartered Capital & Investment, a microcap finance company, has recently been downgraded to a 'Sell' by MarketsMOJO on October 28, 2024. This decision was based on several factors, including weak long-term fundamental strength with an average Return on Equity (ROE) of 0.67%, poor long-term growth with net sales growing at an annual rate of 46.94% and operating profit at -18.03%, and a technical trend that has deteriorated from Mildly Bullish to Mildly Bearish.
In addition, the stock's RSI and OBV technical factors are also currently Bearish. However, the company has declared positive results for the last four consecutive quarters, with a PAT (HY) of Rs 3.14 crore, which has grown at an impressive rate of 823.53%. Furthermore, with a ROE of 3.8 and a price to book value of 0.4, the stock is currently trading at a very attractive valuation compared to its historical averages.

Despite the stock generating a return of 59.05% in the past year, its profits have risen by a staggering 544%, resulting in a PEG ratio of 0. This indicates that the stock is currently trading at a discount compared to its average historical valuations. Additionally, the majority shareholders of Chartered Capital & Investment are the promoters, which can provide stability and confidence to investors.

Moreover, the company has consistently generated strong returns over the last three years, outperforming the BSE 500 index in each of the last three annual periods. While the recent downgrade may be a cause for concern, it is important to note that the stock has shown resilience and potential for growth in the past. Investors should carefully consider these factors before making any investment decisions.