Mefcom Capital Markets Receives 'Sell' Rating Due to Weak Fundamental Strength

Mefcom Capital Markets, a microcap finance company, has recently received a 'Sell' rating from MarketsMOJO. This downgrade is based on the company's weak long-term fundamental strength, with an average Return on Equity (ROE) of 13.57% and poor long-term growth in operating profit, which has only grown at an annual rate of 43.07%.
Despite declaring positive results for the last 5 consecutive quarters, Mefcom Capital Markets has a PAT (9M) of Rs 5.34 crore, which has grown at an impressive rate of 1,625.71%, and a higher NET SALES (9M) of Rs 200.37 crore. However, the stock is currently trading in a mildly bullish range, with multiple factors such as MACD, KST, and OBV indicating a bullish trend.

With a ROE of 34.5, the stock is currently fairly valued with a price to book value of 3.7. Additionally, it is trading at a discount compared to its average historical valuations. While the stock has generated a return of 28.28% over the past year, its profits have risen by a staggering 598%, resulting in a PEG ratio of 0.

It is worth noting that the majority shareholders of Mefcom Capital Markets are the promoters themselves. This may indicate a lack of external investor interest in the company. However, it is important to note that this article is based solely on the information provided and does not include any external data or sources. As always, it is recommended to conduct thorough research and analysis before making any investment decisions.