MarketsMOJO downgrades Nicco Parks & Resorts to 'Sell' due to flat results and expensive valuation.

Nicco Parks & Resorts, a microcap company in the amusement parks and clubs industry, has recently been downgraded to a 'Sell' by MarketsMOJO on April 3, 2024. This decision was based on the company's flat results in December 2023, with a decrease of 31.71% in PBT LESS OI(Q) at Rs 4.91 crore. Additionally, the company's ROE of 28.3 indicates a very expensive valuation with a price to book value of 7.9, which is trading at a premium compared to its historical valuations.
Despite generating a return of 22.65% in the past year, the company's profits have only risen by 12.2%, resulting in a PEG ratio of 2.3. This suggests that the stock may be overvalued. Furthermore, domestic mutual funds hold a mere 0% stake in the company, indicating that they may not be comfortable with the current price or the business.

In the last year, Nicco Parks & Resorts has underperformed the market, with a return of 22.65% compared to the BSE 500's return of 40.22%. However, the company does have a low debt to equity ratio and has shown healthy long-term growth with an annual rate of 54.06% in operating profit.

The technical trend for the stock is currently sideways, indicating no clear price momentum. This trend has deteriorated from mildly bullish on April 3, 2024, and has generated a negative return of -2.11% since then. Overall, considering the company's recent performance and valuation, MarketsMOJO has downgraded Nicco Parks & Resorts to a 'Sell'.