Inani Securities downgraded to 'Sell' by MarketsMOJO due to weak performance and concerns about majority shareholders.

Inani Securities, a microcap company in the finance/NBFC industry, has recently been downgraded to a 'Sell' by MarketsMOJO on November 25, 2024. This decision was based on several factors, including weak long-term fundamental strength with an average Return on Equity (ROE) of 2.15% and poor long-term growth with an annual net sales growth rate of only 1.68%.
In addition, the stock has underperformed the market (BSE 500) in the last year, generating negative returns of -10.35% while the market has seen a 27.32% increase. This is a significant difference and raises concerns about the company's performance.

On a positive note, Inani Securities has declared positive results for the last three consecutive quarters, with higher PAT (9M) at Rs 1.42 Cr and PBDIT (Q) at Rs 0.15 Cr. However, the technical trend for the stock is currently sideways, indicating no clear price momentum. The stock has also seen a decline in technical trend since November 25, 2024, with -1.97% returns.

Despite these factors, the company has a very attractive valuation with a ROE of 7.6 and a price to book value of 0.7. This is a discount compared to its historical valuations. Additionally, while the stock has seen negative returns in the past year, its profits have actually increased by 153%, resulting in a PEG ratio of 0.

It is worth noting that the majority shareholders of Inani Securities are the promoters, which may raise concerns about potential conflicts of interest. Overall, the downgrade to 'Sell' by MarketsMOJO highlights the current weaknesses and underperformance of Inani Securities in the market.