Nagreeka Capital & Infrastructure Downgraded to 'Sell' by MarketsMOJO Due to Weak Fundamentals

Nagreeka Capital & Infrastructure, a microcap company in the finance/NBFC industry, has recently been downgraded to a 'Sell' by MarketsMOJO on October 28, 2024. This decision was based on the company's weak long-term fundamental strength, with an average Return on Equity (ROE) of 0% and poor long-term growth in both net sales and operating profit.
One of the main reasons for the 'Sell' rating is the company's expensive valuation, with a 12.4 Price to Book Value and a ROE of 638.1. However, the stock is currently trading at a fair value compared to its historical valuations.

In the past year, Nagreeka Capital & Infrastructure has generated a return of 53.60%, but its profits have only risen by 146%. This has resulted in a PEG ratio of 0, indicating that the stock may be overvalued.

On a positive note, the company has declared very positive results for the last 5 consecutive quarters, with a growth in net profit of 32.02%. The company's net sales have also grown by 130.69% and its PAT by 139.09% in the last 9 months.

From a technical standpoint, the stock is currently in a mildly bullish range, with both MACD and KST technical factors showing a bullish trend.

The majority shareholders of Nagreeka Capital & Infrastructure are the promoters, and the company has consistently generated returns over the last 3 years. In fact, it has outperformed the BSE 500 in each of the last 3 annual periods.

Overall, while Nagreeka Capital & Infrastructure has shown positive results in the recent past, its weak long-term fundamentals and expensive valuation make it a 'Sell' according to MarketsMOJO. Investors should carefully consider these factors before making any investment decisions.