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

Nagreeka Capital & Infrastructure, a microcap finance company, has recently been downgraded to a 'Sell' by MarketsMOJO on October 15, 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 downgrade is the company's expensive valuation, with a price to book value of 13.7 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 63.45%, 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%. Additionally, its net sales and profits have grown at a significant rate of 130.69% and 139.09%, respectively, in the last 9 months.

From a technical standpoint, the stock is currently in a mildly bullish range, with indicators such as MACD, Bollinger Band, and KST showing bullish signals.

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 index in each of the last 3 annual periods.

Overall, while Nagreeka Capital & Infrastructure may have some positive aspects, the recent downgrade by MarketsMOJO suggests caution for potential investors. It is important to carefully consider all factors before making any investment decisions.