Fino Payments Bank Downgraded to 'Sell' by MarketsMOJO on November 18, 2024.

Fino Payments Bank, a smallcap company in the finance/NBFC industry, has recently been downgraded to a 'Sell' by MarketsMOJO on November 18, 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. Additionally, the company's PAT(Q) has also fallen by -7.8% at Rs 21.15 crore.
One of the main reasons for the downgrade is the company's expensive valuation, with a price to book value of 4.2 and a ROE of 13.9. However, it is worth noting that the stock is currently trading at a discount compared to its average historical valuations. Despite generating a return of 27.76% in the past year, the company's profits have only risen by 17.7%, resulting in a PEG ratio of 1.7.

On the positive side, Fino Payments Bank has shown strong long-term fundamental strength with a CAGR growth of 60.04% in operating profits. This is supported by a healthy long-term growth in net sales, which has grown at an annual rate of 93.19%, and operating profit at 60.04%.

From a technical standpoint, the stock's trend is currently sideways, indicating no clear price momentum. The technical trend has also deteriorated from mildly bullish on November 12, 2024, and has generated a return of -4.87% since then.

It is also worth noting that the majority shareholders of Fino Payments Bank are the promoters, which may indicate their confidence in the company's long-term growth potential. However, it is important to consider all factors before making any investment decisions.