Infibeam Avenues Downgraded to 'Sell' by MarketsMOJO Due to Poor Growth and Expensive Valuation

Infibeam Avenues, a midcap IT software company, has recently been downgraded to a 'Sell' by MarketsMOJO. This decision was based on several factors, including poor long-term growth with an annual operating profit growth rate of only 2.44% over the last 5 years. Additionally, the company's ROE of 4.4 and a price to book value of 2.8 indicate an expensive valuation.
Furthermore, while the stock has seen a significant return of 132.95% in the past year, its profits have only risen by 14.4%, resulting in a high PEG ratio of 6.1. This suggests that the stock may be overvalued compared to its growth potential.

In addition, there has been a decrease in promoter confidence as they have reduced their stake in the company by -0.7% in the previous quarter. This could indicate a lack of faith in the company's future prospects.

On a positive note, Infibeam Avenues has a low debt to equity ratio and has declared positive results for the last 10 consecutive quarters. Its debtors turnover ratio is also high at 39.77 times, and its net sales for the last 9 months were at Rs 2,444.25 crore. Furthermore, the company's PBT less OI has grown at 33.2% in the last quarter.

However, the technical trend for the stock is currently sideways, indicating no clear price momentum. The stock's performance has also been beating the market (BSE 500) with a return of 132.95% in the last year.

In conclusion, while Infibeam Avenues has shown some positive aspects, the overall outlook for the company is not favorable, leading to its downgrade to a 'Sell' by MarketsMOJO. Investors should carefully consider these factors before making any investment decisions.