Danlaw Technologies India Downgraded to 'Sell' by MarketsMOJO Despite Positive Results

Danlaw Technologies India, a microcap IT software company, has recently been downgraded to a 'Sell' by MarketsMOJO on 2024-08-30. This decision was based on several factors, including poor management efficiency with a low ROCE of 3.65%. This indicates a low profitability per unit of total capital, which is further supported by a high enterprise value to capital employed ratio of 14.7.
Despite the company's healthy long-term growth, with net sales growing at an annual rate of 51.50% and operating profit at 65.43%, domestic mutual funds hold only 0% of the company. This could suggest that they are not comfortable with the current price or the business itself.

On the positive side, Danlaw Technologies India has declared positive results for the last 3 consecutive quarters, with the highest ROCE and debtors turnover ratio in the last half-year. Additionally, their profits have risen by 119.5% in the past year, resulting in a PEG ratio of 2.1.

However, the technical trend for the stock is currently sideways, indicating no clear price momentum. This trend has deteriorated since 30-Aug-24, when it was mildly bullish, and has generated -1.41% returns since then.

Despite consistently generating returns over the last 3 years and outperforming BSE 500, the stock has seen a decline in its technical trend and has been downgraded to a 'Sell' by MarketsMOJO. Investors should carefully consider these factors before making any decisions regarding Danlaw Technologies India.