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

K Z Leasing & Finance, a microcap finance company, has recently been downgraded to a 'Sell' by MarketsMOJO on February 12, 2024. This decision was based on the company's weak long-term fundamental strength, with an average Return on Equity (ROE) of 2.31% and poor long-term growth as its operating profit has only grown by an annual rate of 8.30%.
In addition, the company's recent results for December 2023 have been flat, further contributing to the 'Sell' rating. However, the stock is currently in a bullish range and has shown improvement in its technical trend since February 9, 2024, generating 10% returns since then. Multiple technical factors, such as MACD, Bollinger Band, and KST, also suggest a bullish outlook for the stock.

Despite its fair valuation with a price to book value of 0.6 and a ROE of 12.2, the stock is trading at a fair value compared to its historical valuations. Over the past year, the stock has generated a return of 91.79%, while its profits have risen by 213%. This results in a PEG ratio of 0, indicating that the stock may be overvalued.

The majority of shareholders in K Z Leasing & Finance are non-institutional investors. However, the company has consistently generated returns over the last 3 years, outperforming the BSE 500 index in each of the last 3 annual periods. While the stock has shown strong performance in the past year, investors should carefully consider the company's weak long-term fundamentals before making any investment decisions.