Goyal Associates Downgraded to 'Sell' by MarketsMOJO Due to Weak Fundamentals and Underperformance

Goyal Associates, a microcap finance company, has recently been downgraded to a 'Sell' by MarketsMOJO on July 10, 2024. This decision was based on the company's weak long-term fundamental strength, with an average Return on Equity (ROE) of 9.54%. Additionally, the company's results for the March 2024 quarter were flat, indicating a lack of growth.
In the past year, Goyal Associates has underperformed the market, generating a return of only 14.84% compared to the market's 38.18% return. This further supports the 'Sell' rating given by MarketsMOJO.

On a technical level, the stock is currently in a Mildly Bullish range, with its MACD and Bollinger Band factors also showing a Bullish trend. However, with an ROE of 22.5, the stock is fairly valued with a 3 Price to Book Value. It is also trading at a discount compared to its average historical valuations.

Despite the stock's 14.84% return in the past year, its profits have only risen by 16%, resulting in a low PEG ratio of 0.4. This indicates that the stock may not be a good investment option for the long term.

It is worth noting that the majority of Goyal Associates' shareholders are non-institutional investors. This could potentially lead to higher volatility in the stock's performance.

In conclusion, based on the recent downgrade by MarketsMOJO and the company's weak fundamental strength and underperformance in the market, it may be wise for investors to consider selling their shares in Goyal Associates.