IZMO Receives 'Buy' Rating from MarketsMOJO Based on Strong Financial Performance and Positive Technical Indicators

IZMO, a microcap IT software company, has recently received a 'Buy' rating from MarketsMOJO on January 23, 2024. This upgrade is based on the company's strong financial performance and positive technical indicators.
One of the key reasons for the 'Buy' rating is the company's low Debt to Equity ratio, which is at an average of 0.01 times. This indicates a healthy financial position and lower risk for investors.

In the latest quarter, IZMO reported a significant growth in its Profit After Tax (HY) at Rs 10.13 crore, which is a 95.18% increase from the previous year. The company also achieved its highest Return on Capital Employed (HY) at 9.20% and highest Net Sales (Q) at Rs 44.76 crore. These positive results demonstrate the company's strong performance and potential for growth.

From a technical standpoint, the stock is currently in a bullish range and has shown a 22.15% return since December 26, 2023. Multiple indicators such as MACD, Bollinger Band, KST, DOW, and OBV are also showing a bullish trend for the stock.

IZMO also has an attractive valuation with a Price to Book Value of 1.4 and a Return on Equity of 8.8. However, it is trading at a premium compared to its historical valuations. In the past year, the stock has generated a return of 309.16%, while its profits have increased by 42.6%. The PEG ratio of the company is also at a low 0.4, indicating a potential undervaluation.

The majority of the company's shareholders are non-institutional, and IZMO has a track record of beating the market in the long term. In the last year, the stock has outperformed BSE 500 and has also shown strong performance in the last 3 years, 1 year, and 3 months.

However, there are some risks to consider before investing in IZMO. The company has a low Return on Equity of 6.75%, indicating poor management efficiency. Additionally, its operating profit has only grown at an annual rate of 0.30% over the last 5 years, which may raise concerns about its long-term growth potential.

Overall, IZMO's recent 'Buy' rating and strong financial performance make it an attractive investment opportunity. However, investors should carefully consider the risks involved before making any investment decisions.