JMJ Fintech Downgraded to 'Sell' by MarketsMOJO Due to Weak Long-Term Performance

JMJ Fintech, a microcap company in the finance/NBFC industry, has recently been downgraded to a 'Sell' by MarketsMOJO on November 26, 2024. This decision was based on several factors, including weak long-term fundamental strength with an average return on equity (ROE) of 1.35% and poor long-term growth with net sales only growing at an annual rate of 48.70%.
Despite declaring positive results for the last four consecutive quarters, the company's growth in net profit of 263.04% in September 2024 was not enough to outweigh its weak long-term performance. Additionally, the technical trend for the stock is currently sideways, indicating no clear price momentum, and has generated a negative return of -3.09% since November 26, 2024.

However, JMJ Fintech does have some positive aspects, such as a very attractive valuation with a price to book value of 1.9 and trading at a discount compared to its average historical valuations. The company has also consistently generated returns over the last three years, outperforming the BSE 500 index in each of the last three annual periods.

It is worth noting that the majority of JMJ Fintech's shareholders are non-institutional, which may contribute to the company's inconsistent performance. Overall, while the stock has generated a return of 36.34% in the past year, its profits have only risen by 403%, resulting in a PEG ratio of 0. Investors should carefully consider these factors before making any decisions regarding JMJ Fintech's stock.