Optiemus Infracom Receives 'Sell' Rating from MarketsMOJO Due to Weak Fundamental Strength

Optiemus Infracom, a midcap company in the trading industry, has recently received a 'Sell' rating from MarketsMOJO on October 23, 2024. This downgrade is based on several factors that indicate a weak long-term fundamental strength for the company.
One of the main reasons for the 'Sell' rating is the company's low CAGR growth in net sales of only 10.56% over the last 5 years. Additionally, Optiemus Infracom's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -2.22. This signifies that the company may struggle to pay off its debts in the future.

Moreover, the company's return on equity (avg) is only 8.19%, indicating low profitability per unit of shareholders' funds. This is further supported by the company's expensive valuation with a 10.1 Enterprise value to Capital Employed and a PEG ratio of 3.2.

On a positive note, Optiemus Infracom has declared positive results for the last 14 consecutive quarters, with a significant growth in net sales and profits. However, the stock is currently trading at a discount compared to its average historical valuations.

From a technical standpoint, the stock is in a mildly bullish range with its MACD and KST technical factors also showing bullish signals. Additionally, there has been an increase in participation by institutional investors, who collectively hold 0.89% of the company. This suggests that these investors have better resources and capabilities to analyze the company's fundamentals.

In terms of performance, Optiemus Infracom has outperformed the BSE 500 in the last 3 years, 1 year, and 3 months, with a return of 127.02% in the last year alone. However, considering the weak long-term fundamental strength of the company, MarketsMOJO has downgraded the stock to 'Sell'.