MarketsMOJO downgrades Qgo Finance to 'Sell' due to weak fundamentals

Qgo Finance, a microcap finance company, has recently received a 'Sell' rating from MarketsMOJO on October 11, 2024. This downgrade is based on the company's weak long-term fundamental strength, with an average Return on Equity (ROE) of 11.20%.
Despite declaring positive results for the last 10 consecutive quarters, with a net sales growth of 23.23% and a PBDIT (Q) of Rs 3.68 cr, Qgo Finance's PBT LESS OI (Q) is at its highest at Rs 1.17 cr.

Technically, the stock is in a mildly bullish range, with its Bollinger Band and KST technical factors also showing a bullish trend. However, with an ROE of 18.6, the stock is fairly valued with a price to book value of 2.8.

In the past year, Qgo Finance has generated a return of 37.28%, while its profits have risen by 76.6%. However, the PEG ratio of the company is 0.2, indicating that the stock may be overvalued.

The majority shareholders of Qgo Finance are its promoters, and the company has consistently outperformed the BSE 500 index in the last 3 annual periods. Despite this, MarketsMOJO has downgraded the stock to 'Sell' due to its weak long-term fundamentals. Investors are advised to carefully consider these factors before making any investment decisions.