Inventure Growth & Securities Downgraded to 'Sell' by MarketsMOJO Due to Weak Long-Term Performance and Technical Trend

Inventure Growth & Securities, a microcap finance company, has recently been downgraded to a 'Sell' by MarketsMOJO on March 14, 2024. This decision was based on several factors, including weak long-term fundamental strength with an average Return on Equity (ROE) of 3.57% and poor long-term growth with a 50.36% annual growth rate in net sales.
The stock has also underperformed the market in the last year, generating a return of only 21.81% compared to the market's 37.91% return. Additionally, the technical trend for the stock is currently sideways, indicating no clear price momentum.

However, the company did declare positive results for the last two consecutive quarters, with a growth in operating profit of 195.82%. The company's PAT(Q) has also grown by 90.2% and its NET SALES(Q) and PBDIT(Q) are at their highest levels at Rs 48.81 cr and Rs 7.25 cr, respectively.

In terms of valuation, the stock has a fair valuation with a price to book value of 0.9 and an ROE of 3.8. However, it is currently trading at a premium compared to its average historical valuations. The PEG ratio of the company is also low at 0.4, indicating potential for future growth.

It is worth noting that the majority of shareholders in Inventure Growth & Securities are non-institutional investors. Overall, while the company has shown some positive results in the recent quarters, the overall outlook for the stock is currently 'Sell' based on its weak long-term performance and technical trend. Investors should carefully consider these factors before making any investment decisions.