Fino Payments Bank downgraded to 'Sell' by MarketsMOJO due to flat results and expensive valuation.

Fino Payments Bank, a smallcap company in the finance/NBFC industry, has recently been downgraded to a 'Sell' by MarketsMOJO on November 4th, 2024. This decision was based on the company's flat results in the September 2024 quarter, with PBDIT(Q) and PBT LESS OI(Q) at their lowest at Rs -381.73 crore and PAT(Q) at Rs 21.15 crore, showing a decline of -7.8%.
In addition, the company's ROE of 13.9 indicates an expensive valuation with a price to book value of 4.6. However, the stock is currently trading at a discount compared to its average historical valuations. Despite generating a return of 28.47% in the past year, the company's profits have only risen by 17.7%, resulting in a PEG ratio of 1.9.

On the positive side, Fino Payments Bank has shown strong long-term fundamental strength with a CAGR growth of 60.04% in operating profits. Its net sales have also grown at an annual rate of 93.19%, while operating profit has grown at 60.04%. However, the technical trend for the stock is currently sideways, indicating no clear price momentum. The trend has also deteriorated from mildly bullish on November 4th, 2024, resulting in a -4.73% return since then.

It is worth noting that the majority shareholders of Fino Payments Bank are promoters, which may have an impact on the company's decision-making and future performance. Overall, while the company has shown strong long-term growth potential, its recent financial results and valuation may not be favorable for investors, leading to the 'Sell' rating from MarketsMOJO.