Disha Resources Downgraded to 'Sell' by MarketsMOJO, Weak Long-Term Fundamentals and Operating Losses

Disha Resources, a microcap finance company, has recently been downgraded to a 'Sell' by MarketsMOJO on May 7, 2024. This decision was based on the company's weak long-term fundamental strength, as it has been facing operating losses. Additionally, its operating profit has only grown at an annual rate of 4.90%, indicating poor long-term growth.
In December 2023, the company reported flat results with the lowest EPS(Q) at Rs -0.04. However, there are some positive technical factors to consider. The stock is currently in a mildly bullish range and the MACD has been bullish since May 3, 2024.

Disha Resources also has a very attractive valuation with a ROE of 7.3 and a price to book value of 0.4. It is currently trading at a discount compared to its average historical valuations. Despite this, the stock has generated a return of 89.99% in the past year, outperforming the market (BSE 500) returns of 34.08%.

It is worth noting that the majority of shareholders in Disha Resources are non-institutional investors. This could potentially lead to higher volatility in the stock price. However, the company has shown market-beating performance in the past year, with profits rising by 208%.

In conclusion, while Disha Resources may have some positive technical factors and attractive valuation, its weak long-term fundamental strength and recent downgrade to 'Sell' by MarketsMOJO suggest caution for potential investors. It is important to carefully consider all factors before making any investment decisions.