InfoBeans Technologies downgraded to 'Sell' by MarketsMOJO due to bearish outlook and low mutual fund interest.

InfoBeans Technologies, a smallcap IT software company, has recently been downgraded to a 'Sell' by MarketsMOJO on 22nd November 2024. This downgrade is due to the stock being in a Mildly Bearish range and the technical trend deteriorating from Mildly Bullish. Multiple factors such as MACD, Bollinger Band, and KST have contributed to this bearish outlook.
One of the reasons for this downgrade is the low interest shown by domestic mutual funds in the company. Despite its small size, domestic mutual funds hold only 0% of the company, indicating that they are either not comfortable with the current price or the business itself. This is a cause for concern as mutual funds have the capability to conduct in-depth research on companies.

In the last year, the stock has underperformed the market with a return of only 3.09%, compared to the market's (BSE 500) return of 25.57%. However, the company has shown positive results in the last three consecutive quarters, with the highest net sales of Rs 98.27 crore and PBDIT of Rs 19.09 crore. The operating profit to net sales ratio is also at its highest at 19.43%.

On the positive side, the company has a low Debt to Equity ratio of 0.01 times and a fair valuation with a 3.3 Price to Book Value and ROE of 11.2. However, the stock is currently trading at a fair value compared to its historical valuations.

In the past year, while the stock has generated a return of 3.09%, its profits have risen by 61.8%, resulting in a PEG ratio of 0.5. This indicates that the stock may be undervalued, but the current technical trend and bearish factors should be taken into consideration before making any investment decisions.