MarketsMOJO Downgrades A.K.Capital Services to 'Sell' Due to Weak Fundamentals and High Debt

A.K.Capital Services, a microcap finance company, has recently been downgraded to a 'Sell' by MarketsMOJO on November 26, 2024. This decision was based on several factors, including weak long-term fundamental strength, poor growth in net sales and operating profit, and a high debt-to-equity ratio. In the latest quarter, the company's net sales have fallen by 7.2%, while its profits have decreased by 13.8%. Additionally, the debt-to-equity ratio is at its highest at 3.04 times, indicating a high level of debt for the company. On a positive note, the stock is currently in a mildly bullish range and its MACD and KST technical factors are also bullish. However, with a return on equity of only 9.8%, the stock is trading at a premium compared to its historical valuations. Institutional investors have also increased their stake in the company by 2.04% in the previous quarter, indicating their confidence in the company's future prospects. A.K.Capital Services has also outperformed the BSE 500 index in the last 3 years, 1 year, and 3 months, showcasing its market-beating performance. Overall, while the stock has generated a return of 44.08% in the last year, its profits have only increased by 4.4%, resulting in a PEG ratio of 1.9. With these factors in mind, MarketsMOJO has downgraded the stock to 'Sell' and advises caution for potential investors.