MarketsMOJO downgrades Inventure Growth & Securities to 'Sell' due to weak fundamentals and underperformance

Inventure Growth & Securities, a microcap finance company, has recently been downgraded to 'Sell' by MarketsMOJO. This decision was based on the company's weak long-term fundamental strength, with an average Return on Equity (ROE) of 3.57% and poor long-term growth as Net Sales has only grown by an annual rate of 16.43%.
The stock has also underperformed the BSE 500 in the last 3 years, 1 year, and 3 months, with a negative return of -1.83% in the last year. This is in contrast to the company's positive results in the last 4 consecutive quarters, with a growth in Net Profit of 114.69%. The company's NET SALES(HY) has also seen a significant growth of 82.26%, while PBT LESS OI(Q) and PAT(Q) have grown at 92.7% and 86.8%, respectively.

The technical trend for the stock is currently sideways, indicating no clear price momentum. This is a significant change from the mildly bullish trend on 07-Oct-24, which has resulted in a -5.19% return since then.

Despite its attractive valuation with a Price to Book Value of 1, the stock is trading at a fair value compared to its average historical valuations. However, its profits have risen by 156.8% in the past year, resulting in a PEG ratio of 0.1.

In conclusion, while Inventure Growth & Securities has shown positive results in the past year, its weak long-term fundamentals and underperformance in the stock market have led to a 'Sell' rating from MarketsMOJO. Investors should carefully consider these factors before making any investment decisions.