K Z Leasing & Finance Downgraded to 'Sell' by MarketsMOJO Due to Weak Fundamentals

K Z Leasing & Finance, a microcap finance company, has recently been downgraded to a 'Sell' by MarketsMOJO. This decision was based on the company's weak long-term fundamental strength, as it has been facing operating losses. In fact, its operating profit has only grown at an annual rate of 8.30%.
The company's recent financial results for June 2024 also show a decline, with a PBT (profit before tax) of -0.36 crore, which is a decrease of -205.1% compared to the previous quarter. Additionally, the non-operating income is 112.46% of the PBT, indicating a reliance on non-operating sources for profits.

While the stock is currently in a mildly bullish range, there are multiple factors that suggest a bearish trend, such as the MACD, KST, and OBV indicators. Furthermore, with a ROE (return on equity) of 8.3, the stock may seem attractive in terms of valuation with a price to book value of 0.5. However, it is currently trading at a premium compared to its historical average.

It is worth noting that while the stock has generated a return of 29.55% in the past year, its profits have actually fallen by -13%. This could be a cause for concern for potential investors.

It is also important to mention that the majority of the company's shareholders are non-institutional investors. This could potentially lead to a lack of stability in the stock's performance.

In conclusion, while K Z Leasing & Finance may seem like an attractive investment opportunity due to its microcap size, the recent downgrade to 'Sell' by MarketsMOJO and the company's weak long-term fundamentals should be taken into consideration before making any investment decisions.