Om Infra Downgraded to 'Sell' by MarketsMOJO After Negative Results in June Quarter

Om Infra, a smallcap engineering company, has recently been downgraded to a 'Sell' by MarketsMOJO on October 28, 2024. This decision was based on the company's negative results in the June 2024 quarter, where its PAT (profit after tax) has decreased by 29.19% and its interest expenses have increased by 38.59%. Additionally, the company's net sales for the quarter were at its lowest at Rs 169.49 crore.
Other factors that contribute to the 'Sell' rating include the stock being in a mildly bullish range and its MACD and KST technical factors also being bullish. With a ROE (return on equity) of 6.5, the stock is currently fairly valued with a price to book value of 2. However, it is trading at a premium compared to its average historical valuations.

Despite generating a return of 60.39% in the past year, Om Infra's profits have only increased by 111.8%, resulting in a low PEG (price/earnings to growth) ratio of 0.3. This indicates that the stock may be overvalued.

On the other hand, institutional investors have shown an increasing interest in the company, with their stake rising by 1.75% in the previous quarter. They currently hold 3.98% of the company, suggesting that they have better resources and capabilities to analyze the company's fundamentals compared to retail investors.

Om Infra has also consistently outperformed the BSE 500 index in the last 3 annual periods, further highlighting its potential for growth. However, with the recent downgrade to 'Sell' and the company's negative results, investors may want to carefully consider their options before investing in Om Infra.