Jupiter Infomedia Receives 'Sell' Rating from MarketsMOJO, Weak Long-Term Fundamentals Highlighted.

Jupiter Infomedia, a microcap IT software company, has recently received a 'Sell' rating from MarketsMOJO on March 11, 2024. This downgrade is based on several factors that indicate a weak long-term fundamental strength for the company.
One of the main reasons for the 'Sell' rating is the company's average Return on Equity (ROE) of 7.24%, which is considered weak. Additionally, the company has shown poor long-term growth with an annual rate of only 13.70% in operating profit over the last 5 years. This indicates a lack of potential for future growth.

Furthermore, Jupiter Infomedia's ability to service its debt is also a concern, with a poor EBIT to Interest (avg) ratio of -0.04. This suggests that the company may struggle to meet its financial obligations.

In terms of valuation, the stock is considered very expensive with a Price to Book Value of 2. However, it is currently trading at a discount compared to its average historical valuations.

On a positive note, the company has declared positive results for the last 6 consecutive quarters, with a growth of 109.52% in PAT (HY) and a highest ROCE (HY) of 46.33%. This indicates a strong performance in the short term.

From a technical standpoint, the stock is currently in a mildly bullish range, with multiple factors such as MACD, KST, and OBV pointing towards a bullish trend.

It is worth noting that the majority shareholders of Jupiter Infomedia are the promoters themselves. This may raise concerns about potential conflicts of interest.

In terms of market performance, the stock has outperformed the market (BSE 500) with a return of 151.50% in the last year, compared to the market's return of 37.37%. However, it is important to note that the company's profits have only risen by 222.7%, resulting in a PEG ratio of 0.

Overall, the downgrade to a 'Sell' rating by MarketsMOJO highlights the weak long-term fundamentals of Jupiter Infomedia. While the company has shown strong short-term performance, it is important for investors to carefully consider all factors before making any investment decisions.