One 97 Communications Receives 'Sell' Rating from MarketsMOJO Due to Negative Results and High Risk

One 97 Communications, a largecap company in the finance/NBFC industry, has recently received a 'Sell' rating from MarketsMOJO on October 9, 2024. This downgrade is based on the company's negative results in the June 2024 quarter, with a significant decrease in profits and net sales. The PAT(Q) has fallen by -137.8% at Rs -838.90 crore, while the NET SALES(Q) and PBDIT(Q) have also hit their lowest at Rs 1,501.60 crore and Rs -792.20 crore respectively.
One of the main reasons for the 'Sell' rating is the company's negative EBITDA, which makes the stock a risky investment. In addition, the stock is currently trading at a higher risk compared to its average historical valuations. Over the past year, while the stock has generated a return of -18.10%, its profits have fallen by -27.2%.

Furthermore, One 97 Communications has underperformed the market (BSE 500) in the last year, with negative returns of -18.10% compared to the market's 37.10% returns. However, the company does have strong long-term fundamental strength, with a 42.74% CAGR growth in net sales.

From a technical standpoint, the stock is currently in a bullish range, with multiple factors such as MACD, Bollinger Band, and OBV indicating a positive trend. Additionally, the company has a high institutional holding of 65.39%, which suggests that these investors have better capabilities and resources to analyze the company's fundamentals.

In conclusion, while One 97 Communications may have strong long-term fundamentals, the recent negative results and high risk make it a 'Sell' according to MarketsMOJO. Investors should carefully consider these factors before making any investment decisions.