MarketsMOJO Downgrades Kiduja India Due to Weak Fundamentals and High Valuation

Kiduja India, a microcap company in the finance/NBFC industry, has recently received a 'Sell' rating from MarketsMOJO on October 14, 2024. This downgrade is due to the company's weak long-term fundamental strength, with a negative book value and poor growth in net sales and operating profit.
The company's valuation is also a cause for concern, with a very expensive price to book value of -5.2 and a ROE of -166.4. Despite a 441.91% return in the past year, the company's profits have only risen by 613%, resulting in a PEG ratio of 0.

However, there are some positive factors to consider. Kiduja India has declared positive results for the last 5 consecutive quarters, with higher net sales and PAT in the last 9 months. The stock is also technically in a mildly bullish range, with multiple indicators such as MACD, Bollinger Band, KST, and DOW showing a bullish trend.

Moreover, there has been a rise in promoter confidence, with promoters increasing their stake in the company by 9.99% in the previous quarter and currently holding 75% of the company. This is a strong indication of their belief in the future of the business.

In terms of performance, Kiduja India has outperformed the BSE 500 in the long term as well as the near term, further showcasing its potential in the market. However, with the recent downgrade from MarketsMOJO, investors may want to carefully consider their options before making any decisions regarding this microcap company in the finance/NBFC industry.