MarketsMOJO downgrades Gilada Finance & Investments to 'Sell' due to weak fundamentals and underperformance

Gilada Finance & Investments, a microcap finance company, has recently been downgraded to a 'Sell' by MarketsMOJO. This decision was based on the company's weak long-term fundamental strength, with an average Return on Equity (ROE) of 6.08%. Additionally, the company has shown poor long-term growth, with net sales growing at an annual rate of 13.54% and operating profit at 2.62%.
In the last year, Gilada Finance & Investments has underperformed the market (BSE 500) with negative returns of -6.42%, while the market has generated returns of 27.99%. This underperformance is a cause for concern for investors.

On a technical level, the stock is currently in a mildly bullish range, with both the MACD and KST technical factors showing bullish signals. However, the company's ROE of 8.3 and attractive valuation with a price to book value of 0.8 may be appealing to some investors.

It is worth noting that the majority shareholders of Gilada Finance & Investments are the promoters themselves. This may raise questions about the company's corporate governance and potential conflicts of interest.

Overall, the downgrade to 'Sell' by MarketsMOJO is a reflection of the company's weak long-term performance and underwhelming returns for investors. It is important for investors to carefully consider all factors before making any investment decisions.