Fluidomat Receives 'Sell' Rating from MarketsMOJO, Technical Trend Deteriorates

Fluidomat, a microcap engineering company, has recently received a 'Sell' rating from MarketsMOJO. The stock has been downgraded due to its technical trend deteriorating from sideways to mildly bearish on November 13, 2024. Since then, the stock has generated a negative return of -5.77%. Multiple factors such as MACD, Bollinger Band, and KST have contributed to this bearish trend.
In terms of valuation, Fluidomat has a high ROE of 19.5 and a price to book value of 5.8, making it a very expensive stock. However, it is currently trading at a discount compared to its historical valuations. Despite generating a return of 55.34% in the past year, the company's profits have only increased by 34.1%, resulting in a PEG ratio of 0.9.

On a positive note, Fluidomat has a low debt to equity ratio and has shown healthy long-term growth with an annual operating profit growth rate of 48.73%. The company has also declared positive results for the last 7 consecutive quarters, with net sales growing at 24.12% and PBDIT reaching its highest at Rs 5.20 crore. Additionally, the majority shareholders of the company are promoters, indicating their confidence in the company's future.

Furthermore, Fluidomat has consistently outperformed the BSE 500 index in the last 3 annual periods, showcasing its ability to generate consistent returns for its investors. However, considering the current technical trend and expensive valuation, MarketsMOJO has downgraded the stock to 'Sell'. Investors are advised to carefully evaluate their investment decisions before investing in Fluidomat.