MarketsMOJO Downgrades Greencrest Financial Services to 'Sell' Rating Due to Weak Fundamentals and Underperformance

Greencrest Financial Services, a microcap finance company, has recently received a 'Sell' rating from MarketsMOJO on March 11, 2024. This downgrade is based on the company's weak long-term fundamental strength, with an average Return on Equity (ROE) of only 3.48%. Additionally, the company has shown poor long-term growth, with Net Sales declining at an annual rate of -8.41%.
In the past year, Greencrest Financial Services has underperformed the market, generating a return of only 15.91% compared to the market's return of 37.37% (BSE 500). This further supports the 'Sell' rating given by MarketsMOJO.

However, there are some positive factors to consider. The company has declared very positive results in December 2023, with a growth in Net Sales of 348.17%. It has also consistently declared positive results for the last three quarters. In addition, the company's NET SALES(HY) and PAT(HY) have both increased, with figures of Rs 30.55 cr and Rs 6.96 cr respectively.

From a technical standpoint, the stock's trend is currently sideways, indicating no clear price momentum. The technical trend has also deteriorated since March 11, 2024, generating a return of -1.92% since then.

Greencrest Financial Services also has a very attractive valuation, with a ROE of 10.9 and a price to book value of 0.6. The stock is currently trading at a discount compared to its average historical valuations. Additionally, while the stock has generated a return of 15.91% in the past year, its profits have risen by 314.1%, resulting in a PEG ratio of 0.

It is worth noting that the majority of shareholders in Greencrest Financial Services are non-institutional investors. This may indicate a lack of confidence in the company's performance.

In conclusion, while Greencrest Financial Services has shown some positive results in terms of net sales and profits, its weak long-term fundamental strength and underperformance in the market have led to a 'Sell' rating from MarketsMOJO. Investors should carefully consider these factors before making any decisions regarding this microcap finance company.