LKP Finance Downgraded to 'Sell' by MarketsMOJO, Promoters Decrease Stake

LKP Finance, a microcap finance company, has recently been downgraded to a 'Sell' by MarketsMOJO on 2024-07-10. This decision was based on several factors, including weak long-term fundamental strength with an average Return on Equity (ROE) of 11.94% and poor long-term growth with an annual operating profit growth rate of -9.11%.
In addition, the promoters of LKP Finance have decreased their stake in the company by -18.3% over the previous quarter, which may indicate a lack of confidence in the future of the business. However, the company has declared positive results for the last 6 consecutive quarters, with significant growth in net sales and profits. The debt-equity ratio is also at a low of 0.24 times.

Technically, the stock is currently in a mildly bullish range and has shown a 20.13% return since 04-Jul-24. Multiple factors, such as MACD, Bollinger Band, and KST, suggest a bullish trend for the stock. With a ROE of 16.6, the stock is fairly valued with a price to book value of 0.7.

Despite its recent downgrade, LKP Finance has a market-beating performance in the long term, with a return of 147.16% in the last year and outperforming BSE 500 in the last 3 years, 1 year, and 3 months. Overall, while the stock may currently be facing some challenges, it has shown strong performance in the past and has the potential to bounce back in the future.