Disha Resources downgraded to 'Sell' by MarketsMOJO due to weak fundamentals and underperformance

Disha Resources, a microcap company in the finance/NBFC industry, has recently been downgraded to a 'Sell' by MarketsMOJO on February 27, 2024. This decision was based on the company's weak long-term fundamental strength, as it has been operating at a loss. Additionally, the company has shown poor long-term growth with only a 4.90% annual increase in operating profit.
In the latest quarter, Disha Resources reported flat results with the lowest EPS (Q) at Rs -0.04. This has also contributed to the stock's underperformance in the market, as it has generated negative returns of -28.16% in the last year, while the market (BSE 500) has seen a 38.66% increase.

However, there are some positive technical factors to consider. The stock is currently in a mildly bullish range, and both the MACD and KST technical indicators are also bullish. Additionally, with a ROE of 7.3, the stock has a very attractive valuation with a price to book value of 0.4. This means that the stock is currently trading at a discount compared to its average historical valuations.

It is worth noting that despite the negative returns in the past year, Disha Resources has seen a 208% increase in profits. This could potentially make the stock a good long-term investment opportunity.

It is also important to mention that the majority of shareholders in Disha Resources are non-institutional investors. This could indicate a lack of confidence from larger, more experienced investors.

In conclusion, while Disha Resources may have some positive technical factors and attractive valuation, the company's weak long-term fundamental strength and underperformance in the market make it a 'Sell' according to MarketsMOJO. Investors should carefully consider these factors before making any investment decisions.