Classic Leasing & Finance Downgraded to 'Sell' by MarketsMOJO, Weak Fundamentals Raise Concerns

Classic Leasing & Finance, a microcap finance company, has recently been downgraded to a 'Sell' by MarketsMOJO on November 25, 2024. This decision was based on the company's weak long-term fundamental strength, with a negative book value and poor growth in net sales and operating profit.
The stock is considered risky due to its negative book value and is currently trading above its average historical valuations. Despite a 135.36% return in the past year, the company's profits have only risen by 34%, resulting in a PEG ratio of 0.

However, there have been some positive results for Classic Leasing & Finance in September 2024, with the company's PBDIT(Q), PBT LESS OI(Q), and PAT(Q) reaching their highest levels at Rs 0.12 cr and Rs 0.17 cr respectively.

From a technical standpoint, the stock is currently in a bullish range, with multiple factors such as MACD, Bollinger Band, KST, DOW, and OBV all indicating a positive trend. Additionally, the majority of the company's shareholders are non-institutional investors.

Despite its recent market-beating performance, Classic Leasing & Finance's downgraded stock call and weak long-term fundamentals suggest caution for potential investors.