Infibeam Avenues Downgraded to 'Sell' by MarketsMOJO, Poor Long-Term Growth and Expensive Valuation Cited

Infibeam Avenues, a midcap IT software company, has recently been downgraded to a 'Sell' by MarketsMOJO. This decision was based on the company's poor long-term growth, with operating profit only growing at an annual rate of 2.44% over the last 5 years. Additionally, the company's ROE of 4.6 and price to book value of 2.5 indicate an expensive valuation.
Despite the stock generating a return of 109.59% in the past year, its profits have only risen by 13.3%, resulting in a high PEG ratio of 6. This suggests that the stock may be overvalued compared to its earnings growth potential.

Moreover, there has been a decrease in promoter confidence as they have reduced their stake in the company by -0.7% over the previous quarter. This could indicate a lack of faith in the future of the business.

On a positive note, the company has a low debt to equity ratio and has declared positive results for the last 11 consecutive quarters. Its net sales have also grown at a rate of 53.54% and its ROCE is at a high of 5.93%. However, the technical trend for the stock is currently sideways, with no clear price momentum.

Despite the stock's market-beating performance, with a return of 109.59% in the last year, it is important to consider the company's fundamentals and the recent downgrade by MarketsMOJO. Investors should carefully evaluate all factors before making any investment decisions.