MarketsMOJO Downgrades XT Global Infotech to 'Sell' Due to Poor Growth and Negative Results

On November 22, 2024, MarketsMOJO downgraded its stock call on XT Global Infotech to 'Sell'. This decision was based on the company's poor long-term growth, as its operating profit has declined by an annual rate of -9.88% over the last 5 years. Additionally, the company has declared negative results for the past 3 consecutive quarters, with its PAT (HY) growing at a rate of -21.16% and its ROCE (HY) at its lowest point of 8.21%. The company's net sales for the quarter were also at their lowest point of Rs 48.74 crore.

Despite being a microcap company, domestic mutual funds hold only 0.01% of the company's shares. This could indicate that they are not comfortable with the company's current price or its business. Furthermore, XT Global Infotech has underperformed the market in the last year, with negative returns of -11.72% compared to the market's 25.57% returns (BSE 500).

Other factors to consider include the technical trend, which is currently sideways with no clear price momentum. The stock's Bollinger Band and OBV technical factors are also sideways, indicating a lack of significant movement. However, with a ROCE of 6.4, the stock is currently trading at an attractive valuation with a 2.9 Enterprise value to Capital Employed. This is a discount compared to its average historical valuations. Despite this, the company's profits have fallen by -19.8% over the past year, while the stock has generated negative returns of -11.72%.

In conclusion, based on the company's poor long-term growth, negative results, and underperformance in the market, MarketsMOJO has downgraded its stock call on XT Global Infotech to 'Sell'. Investors should carefully consider these factors before making any investment decisions.