NCL Research and Financial Services Downgraded to 'Sell' by MarketsMOJO: Weak Fundamentals and Lack of Institutional Confidence.

NCL Research and Financial Services, a microcap finance company, has recently been downgraded to a 'Sell' by MarketsMOJO on April 5th, 2024. This decision was based on the company's weak long-term fundamental strength, with an average Return on Equity (ROE) of 0.48% and poor long-term growth as Net Sales has only grown by an annual rate of 9.57%.
Despite positive results in December 2023, with the company's PAT(Q) reaching its highest at Rs 1.05 crore and EPS(Q) at Rs 0.01, MarketsMOJO still believes that the stock is not a good investment option. However, the stock is currently in a Mildly Bullish range and its Bollinger Band and KST technical factors are also Bullish.

With a ROE of 1.4, NCL Research and Financial Services has a fair valuation with a 0.7 Price to Book Value. Additionally, the stock is currently trading at a discount compared to its average historical valuations. Over the past year, the stock has generated a return of 84.09%, while its profits have risen by 89%. The PEG ratio of the company is also at a low 0.5.

It is worth noting that the majority of shareholders in NCL Research and Financial Services are non-institutional investors. This may indicate a lack of confidence in the company's future performance. Overall, MarketsMOJO's downgrade to 'Sell' suggests that investors should approach this microcap finance company with caution.