MarketsMOJO Downgrades Arunis Abode to 'Sell' Due to Weak Long-Term Fundamentals

Arunis Abode, a microcap finance company, has recently received a 'Sell' rating from MarketsMOJO on April 1, 2024. This downgrade is based on the company's weak long-term fundamental strength, with an average Return on Equity (ROE) of 3.43% and poor long-term growth as its operating profit has declined by an annual rate of -5.84%. Additionally, the company's results for December 2023 were flat.
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 an ROE of 16.9, the stock is considered to have a Very Attractive valuation with a 2.4 Price to Book Value. It is also trading at a discount compared to its average historical valuations.

In the past year, Arunis Abode has generated a return of 82.85%, while its profits have risen by 76%. This has resulted in a PEG ratio of 0.1 for the company. It is worth noting that the majority shareholders of the company are its promoters.

Despite its market-beating performance in the long term, with outperforming BSE 500 in the last 3 years, 1 year, and 3 months, MarketsMOJO has downgraded the stock to 'Sell'. This decision is based on the company's weak long-term fundamentals and flat results in December 2023. Investors are advised to carefully consider these factors before making any investment decisions regarding Arunis Abode.