MarketsMOJO Downgrades R R Financial Consultants to 'Sell' Due to Weak Fundamentals and Growth

R R Financial Consultants, a microcap finance company, has recently been downgraded to a 'Sell' by MarketsMOJO on May 13, 2024. This decision was based on several factors, including weak long-term fundamental strength with an average Return on Equity (ROE) of 0.71% and poor long-term growth with an annual rate of -6.71% for operating profit.
In addition, the company's results for December 2023 showed a flat performance with the lowest operating profit to net sales ratio of 0.00%. However, the stock is currently in a bullish range and has shown improvement in its technical trend since May 10, 2024, generating a return of 10%.

Other bullish factors for the stock include its ROE of 2, which indicates a fair valuation with a price to book value of 0.5. Moreover, the stock is currently trading at a discount compared to its average historical valuations. Despite generating a return of 100.61% in the past year, the company's profits have only risen by 39%, resulting in a PEG ratio of 0.4.

The majority shareholders of R R Financial Consultants are the promoters, indicating their confidence in the company's performance. The stock has also outperformed the market (BSE 500) with a return of 100.61% in the last year, compared to the market's return of 31.64%.

Overall, the downgrade to 'Sell' by MarketsMOJO highlights the company's weak fundamental strength and poor long-term growth. Investors should carefully consider these factors before making any investment decisions regarding R R Financial Consultants.