MarketsMOJO downgrades NCL Research and Financial Services due to weak fundamentals and lackluster financial results

NCL Research and Financial Services, a microcap finance company, has recently received a 'Sell' rating from MarketsMOJO on May 15, 2024. This downgrade is based on the company's weak long-term fundamental strength, with an average Return on Equity (ROE) of 0.48% and poor long-term growth as Net Sales has only grown by an annual rate of 9.57%.
In addition, the company's recent financial results in December 2023 have also been lackluster, with a PAT(Q) of Rs 1.05 crore and EPS(Q) of Rs 0.01, the highest in the past year. However, the stock is currently in a mildly bullish range and a key technical factor, KST, has been bullish since March 6, 2024.

Despite a fair valuation with a ROE of 1.4 and a price to book value of 0.6, the stock is currently trading at a discount compared to its average historical valuations. Over the past year, the stock has generated a return of 72.50%, but its profits have only risen by 89%, resulting in a PEG ratio of 0.4.

It is worth noting that the majority of shareholders in NCL Research and Financial Services are non-institutional investors. This may indicate a lack of confidence in the company's future prospects. As a microcap finance company, NCL Research and Financial Services may face challenges in competing with larger players in the industry. Investors should carefully consider these factors before making any investment decisions.