Indo-City Infotech Downgraded to 'Sell' by MarketsMOJO, But Attractive Valuation and Strong Past Performance Make it Worth Considering for Long-Term Investors

Indo-City Infotech, a microcap IT software company, has recently been downgraded to a 'Sell' by MarketsMOJO on September 30, 2024. This decision was based on the company's weak long-term fundamental strength, as it has been operating at a loss. Additionally, the company's ability to service its debt is also a concern, with a poor EBIT to Interest ratio of -0.62.
In the latest quarter, Indo-City Infotech reported a decline in net sales by -47.96%, with PBDIT and PBT LESS OI at their lowest levels. However, the stock is currently in a mildly bullish range and has multiple bullish factors such as MACD, KST, DOW, and OBV.

Despite these positive technical indicators, the company's ROE stands at 6.9, making it an attractive valuation with a price to book value of 1.4. Moreover, the stock is currently trading at a discount compared to its historical valuations. In the past year, the stock has generated a return of 101.08%, with profits rising by 80%. The PEG ratio of the company is also at a favorable 0.

Indo-City Infotech has consistently delivered strong returns over the last three years, outperforming the BSE 500 index in each of the last three annual periods. While the recent downgrade may raise concerns, the company's past performance and attractive valuation make it a stock worth considering for long-term investors.