MarketsMOJO Downgrades Vasudhagama Enterprises to 'Sell' Due to Expensive Valuation and Decline in Profits

Vasudhagama Enterprises, a microcap finance company, has recently been downgraded to a 'Sell' by MarketsMOJO on July 4th, 2024. This decision was based on several factors, including the company's return on equity (ROE) of 3.8, which indicates an expensive valuation with a price to book value of 1.2. Additionally, the stock is currently trading at a premium compared to its historical valuations.
Despite generating a return of 327.10% in the past year, Vasudhagama Enterprises has seen a decline in profits by 0%. However, the company has declared positive results for the last four consecutive quarters, with its PBDIT (quarterly) reaching a high of Rs 0.46 crore, PBT LESS OI (quarterly) at Rs 0.41 crore, and PAT (quarterly) at Rs 0.30 crore.

From a technical standpoint, the stock is currently in a mildly bullish range, with both its MACD and KST technical factors showing a bullish trend. The majority of shareholders in the company are non-institutional investors.

In the long term, Vasudhagama Enterprises has shown market-beating performance, outperforming the BSE 500 index in the last 3 years, 1 year, and 3 months. However, considering the recent downgrade and the company's financial indicators, MarketsMOJO has advised investors to sell their stocks in Vasudhagama Enterprises.