MarketsMOJO Downgrades Keynote Financial Services to 'Sell' Rating Due to Weak Fundamentals

Keynote Financial Services, a microcap finance company, has recently received a 'Sell' rating from MarketsMOJO on September 11, 2024. This downgrade is based on the company's weak long-term fundamental strength, with an average Return on Equity (ROE) of 5.81% and poor long-term growth as its operating profit has declined by an annual rate of -1.02%.
Despite declaring positive results for the last 5 consecutive quarters, Keynote Financial Services' PAT (HY) has only grown by 234.97% and its NET SALES (HY) has grown by 56.72%. The stock is currently in a mildly bullish range, with its MACD and KST technical factors also showing bullish signals.

With an ROE of 21.5, the stock is fairly valued with a 1.4 Price to Book Value. However, it is currently trading at a premium compared to its average historical valuations. In the past year, the stock has generated a return of 109.37%, while its profits have only risen by 213.1%. This gives the company a PEG ratio of 0, indicating that it may be overvalued.

The majority shareholders of Keynote Financial Services are its promoters. Despite its market-beating performance in the long term, with a return of 109.37% in the last year, the stock has also outperformed BSE 500 in the last 3 years, 1 year, and 3 months. However, MarketsMOJO's downgrade suggests that investors should be cautious when considering this stock.