Mahaveer Infoway Receives 'Sell' Rating from MarketsMOJO

Mahaveer Infoway, a microcap IT software company, has recently received a 'Sell' rating from MarketsMOJO on October 16, 2023. This downgrade is based on the company's weak long-term fundamental strength, with a -27.58% CAGR growth in net sales over the last 5 years. Additionally, the company's ability to service its debt is weak, with a poor EBIT to Interest (avg) ratio of 0.04. This signifies low profitability per unit of shareholders' funds.
Technically, the stock is in a bearish range and has deteriorated from a mildly bearish trend on December 8, 2023. Multiple factors, such as MACD, Bollinger Band, and KST, are also bearish for the stock.

In the last year, Mahaveer Infoway has underperformed the market (BSE 500) with negative returns of -16.96%, while the market has generated returns of 16.72%. This indicates a significant underperformance by the company.

However, there are some positive factors for the company, such as its highest ROCE (HY) at 12.70%, inventory turnover ratio (HY) at 8.49 times, and debtors turnover ratio (HY) at 7.49 times in September 2023. With a ROCE of 11.5, the company also has a very attractive valuation with a 0.9 enterprise value to capital employed. The stock is currently trading at a discount compared to its average historical valuations.

It is worth noting that while the stock has generated negative returns of -16.96% in the past year, its profits have also fallen by -50%. The majority shareholders of Mahaveer Infoway are non-institutional investors.