Jupiter Infomedia Downgraded to 'Sell' Rating

Jupiter Infomedia, a microcap IT software company, has recently been downgraded to a 'Sell' by MarketsMOJO on December 8, 2023. This decision was based on the company's weak long-term fundamental strength, poor growth in operating profit over the last 5 years, and its inability to service its debt with a negative EBIT to Interest ratio.
Furthermore, with a high ROE of 26.7 and a price to book value of 1.3, the stock is considered to be very expensive. However, it is currently trading at a discount compared to its historical valuations. In the past year, the stock has generated a return of 39.05%, while its profits have increased by 261.7%, resulting in a PEG ratio of 0.

On a positive note, Jupiter Infomedia has declared positive results for the last 5 consecutive quarters, with a significant growth in PAT (HY) at Rs 3.41 crore and a highest ROCE (HY) of 46.33%. The stock is also technically in a mildly bullish range, with multiple factors such as MACD, Bollinger Band, and KST indicating a bullish trend.

The majority shareholders of Jupiter Infomedia are the promoters, and the stock has outperformed the market (BSE 500) with a return of 39.05% in the last year, compared to the market's return of 16.72%. However, considering the current market conditions and the company's financial performance, MarketsMOJO has downgraded the stock to a 'Sell'. Investors are advised to carefully evaluate their investment decisions and consider all the factors before making any decisions regarding Jupiter Infomedia's stock.