MarketsMOJO Downgrades Cybertech Systems & Software to 'Sell' Amidst Flat Results

Cybertech Systems & Software, a microcap IT software company, has recently been downgraded to a 'Sell' by MarketsMOJO on March 26, 2024. This decision was based on the company's flat results in December 2023, with its operating profit to net sales ratio at a low of 10.14%. Additionally, its PBT less OI and PBDIT were also at their lowest at Rs 3.57 crore and Rs 5.54 crore respectively.

One of the few positive factors for the company is its low debt to equity ratio, which is at 0 times on average. However, its long-term growth has been stagnant, with an annual growth rate of only 80.27% in operating profit. The technical trend for the stock is currently sideways, indicating no clear price momentum. Although it has improved since March 21, 2024, it has only generated a return of -1.97% since then.

With a ROE of 13.1, the stock is currently fairly valued with a price to book value of 2.7. However, it is trading at a premium compared to its historical valuations. In the past year, the stock has generated a return of 49.57%, outperforming the market (BSE 500) returns of 39.26%. However, its profits have fallen by -1.9% during the same period.

The majority of the company's shareholders are non-institutional investors. Despite its market-beating performance in the past year, the recent downgrade by MarketsMOJO suggests caution for potential investors. It is important to carefully consider all factors before making any investment decisions.