Ladderup Finance Receives 'Sell' Rating from MarketsMOJO, But Shows Positive Results and Strong Cash Position

Ladderup Finance, a microcap finance company, has recently received a 'Sell' rating from MarketsMOJO on November 29, 2024. This downgrade is based on the company's weak long-term fundamental strength, with an average Return on Equity (ROE) of 1.49%. Additionally, the company has shown poor long-term growth, with a decline in net sales by an annual rate of -12.77% and operating profit at -148.64%.
One of the main reasons for the 'Sell' rating is the company's expensive valuation, with a price to book value of 1. This is significantly higher than its historical average valuations. Despite generating a return of 127.76% in the past year, the company's profits have fallen by -182.5%.

However, there are some positive factors to consider. Ladderup Finance declared very positive results in September 2024, with a growth in operating profit of 73.97%. The company has also shown positive results for the last two consecutive quarters. In addition, the company has a strong cash position, with cash and cash equivalents at Rs 5.77 crore, and has achieved its highest net sales and PBDIT in the last quarter.

From a technical standpoint, the stock is currently in a mildly bullish range, with both MACD and KST technical factors showing a bullish trend. Furthermore, promoter holding has increased this quarter and now stands at 68.91% of the company.

Despite its recent downgrade, Ladderup Finance has a track record of market-beating performance in the long term as well as the near term. Along with generating a return of 127.76% in the last year, the stock has outperformed BSE 500 in the last 3 years, 1 year, and 3 months. Investors should carefully consider these factors before making any investment decisions regarding Ladderup Finance.