MarketsMOJO Downgrades Apollo Finvest (India) to 'Sell' Due to Flat Results and Expensive Valuation

Apollo Finvest (India), a microcap finance company, has recently been downgraded to a 'Sell' by MarketsMOJO on September 5th, 2024. This decision was based on the company's flat results in June 2024, with a -39.14% growth in profits. Additionally, the stock is currently in a Mildly Bearish range and a key technical factor, the Bollinger Band, has been Bearish since August 23rd, 2024.

One of the main reasons for the 'Sell' rating is the company's expensive valuation, with a 5.5 Price to Book Value and a ROE of 12.6. However, the stock is currently trading at a discount compared to its average historical valuations. Despite generating a return of 71.04% in the past year, the company's profits have fallen by -29.6%.

On the other hand, Apollo Finvest (India) has strong long-term fundamental strength, with an average ROE of 19.18%. The company has also shown healthy long-term growth, with an annual growth rate of 30.60% in Net Sales and 69.14% in Operating profit.

The majority shareholders of Apollo Finvest (India) are the promoters, indicating their confidence in the company's future prospects. In fact, the stock has outperformed the market (BSE 500) with a return of 71.04% in the last year, compared to the market's return of 37.08%.

In conclusion, while Apollo Finvest (India) has shown strong long-term growth and has the backing of its promoters, the recent flat results and expensive valuation have led to a 'Sell' rating by MarketsMOJO. Investors should carefully consider these factors before making any investment decisions.