Moneyboxx Finance Receives 'Sell' Rating from MarketsMOJO, Caution for Potential Investors.

Moneyboxx Finance, a microcap finance company, has recently received a 'Sell' rating from MarketsMOJO. This downgrade is due to the company's weak long-term fundamental strength, with an average Return on Equity (ROE) of 1.08%. Additionally, the stock is currently trading at an expensive valuation with a price to book value of 4.7, although it is still at a discount compared to its historical valuations.
Despite the company's recent success in generating a return of 36.87%, its profits have only risen by 431.5%, resulting in a low PEG ratio of 0.2. Furthermore, domestic mutual funds hold a small stake of only 0% in the company, which could indicate that they are not comfortable with the current price or the business itself.

On a positive note, Moneyboxx Finance has declared outstanding results in June 2024, with a growth in net profit of 162.2%. The company has also consistently declared positive results for the last 7 quarters, with its highest net sales and PBDIT in the last quarter at Rs 45.63 crore and Rs 20.98 crore, respectively. Additionally, the company has a strong cash position, with cash and cash equivalents at Rs 113.64 crore in the last half-year.

From a technical standpoint, the stock's trend is currently sideways, indicating no clear price momentum. The technical trend has also deteriorated from mildly bullish on 08-Oct-24, generating only 0.44% returns since then.

Despite consistent returns over the last 3 years and outperforming the BSE 500 index, Moneyboxx Finance's recent downgrade to 'Sell' by MarketsMOJO suggests caution for potential investors. With a microcap size and lack of interest from domestic mutual funds, it may be wise to wait for further developments before considering an investment in this company.