Jindal Capital Downgraded to 'Sell' by MarketsMOJO, Despite Positive Results and Bullish Factors

Jindal Capital, a microcap finance company, has recently been downgraded to a 'Sell' by MarketsMOJO on August 30, 2024. This decision was based on the company's weak long-term fundamental strength, with an average Return on Equity (ROE) of 2.40% and a poor long-term growth rate of -18.53% in Net Sales.
Other factors contributing to this downgrade include the company's positive results in June 2024, with PBDIT(Q) at its highest at Rs 0.90 cr, PBT LESS OI(Q) at Rs 0.79 cr, and PAT(Q) at Rs 0.79 cr. However, despite these positive results, the stock is currently in a Mildly Bullish range, with a technical trend that has improved from Mildly Bearish on August 20, 2024, generating a 5.4% return since then. Additionally, multiple factors for the stock are Bullish, such as MACD, Bollinger Band, KST, and DOW.

With an ROE of 14.6, Jindal Capital is currently fairly valued with a 3.4 Price to Book Value. However, the stock is trading at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 104.70%, while its profits have risen by 131%. The PEG ratio of the company is 0, indicating a potential undervaluation.

The majority shareholders of Jindal Capital are its promoters, and the company has shown market-beating performance in both the long-term and near-term. Along with generating a return of 104.70% in the last year, the stock has also outperformed BSE 500 in the last 3 years, 1 year, and 3 months. While the stock may currently be facing a 'Sell' rating, its past performance and potential undervaluation make it a company worth keeping an eye on in the future.