CNI Research Receives 'Sell' Rating from MarketsMOJO, Despite Strong Historical Performance

CNI Research, a microcap IT software company, has recently received a 'Sell' rating from MarketsMOJO on November 4th, 2024. This downgrade is based on several factors, including weak long-term fundamental strength with an average Return on Equity (ROE) of 3.86%, poor long-term growth in net sales and operating profit, and a weak ability to service its debt with a low EBIT to Interest ratio.
Additionally, the stock is currently trading at a high valuation with a price to book value of 11.1, making it very expensive. However, it is currently trading at a discount compared to its historical valuations.

In the past year, the stock has seen a significant return of 517.60%, but its profits have only risen by 89%, resulting in a PEG ratio of 0.8. This indicates that the stock may be overvalued.

On a positive note, CNI Research has shown strong results in June 2024, with a 35% growth in net sales and a higher profit after tax. The stock is also technically in a mildly bullish range, with multiple factors such as MACD, Bollinger Band, and KST indicating a bullish trend.

The majority of shareholders in CNI Research are non-institutional investors. Despite the recent downgrade, the stock has a history of market-beating performance in the long term, outperforming the BSE 500 index in the last 3 years, 1 year, and 3 months.

Overall, while CNI Research may have some weaknesses in its fundamentals and valuation, it has shown promising results and has a history of market-beating performance. Investors should carefully consider these factors before making any decisions regarding the stock.