Dreamfolks Services Downgraded to 'Sell' by MarketsMOJO, Technical Factors Cited

Dreamfolks Services, a smallcap company in the travel services industry, has recently been downgraded to a 'Sell' by MarketsMOJO on October 23, 2024. This decision was based on various technical factors, including the stock being in a bearish range, deteriorating technical trend, and bearish MACD and Bollinger Band indicators.
In addition, Dreamfolks Services has a high ROE of 29.2, making it an expensive stock with a price to book value of 9.9. It is currently trading at a premium compared to its historical valuations. Despite generating a return of -12.38% in the past year, the company's profits have only increased by 1.5%.

Dreamfolks Services has also underperformed the market (BSE 500) in the last year, with the market generating returns of 34.58% while the stock has generated negative returns of -12.38%.

However, the company does have some positive factors, such as high management efficiency with a ROE of 37.74% and a low debt to equity ratio of 0 times. It also has a healthy long-term growth rate, with net sales growing at an annual rate of 68.65% and operating profit at 53.76%.

Dreamfolks Services has consistently declared positive results for the last 8 quarters and has a high debtors turnover ratio of 4.28 times and net sales of Rs 320.80 crore. The majority shareholders of the company are the promoters themselves.

Overall, while Dreamfolks Services may have some positive aspects, the recent downgrade to 'Sell' by MarketsMOJO suggests caution for potential investors.