Understanding the Current Rating
The Strong Sell rating assigned to Quest Capital Markets Ltd indicates a cautious stance for investors, signalling that the stock is expected to underperform relative to the broader market and its sector peers. This recommendation is based on a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. Each of these factors contributes to the overall assessment and helps investors understand the risks and opportunities associated with the stock.
Quality Assessment
As of 05 February 2026, Quest Capital Markets Ltd exhibits a below-average quality grade. This is primarily due to weak long-term fundamental strength. The company’s average Return on Equity (ROE) stands at a modest 1.88%, which is considerably low for a capital markets firm where efficient capital utilisation is critical. Furthermore, the company has experienced a negative net sales growth rate of -3.36% annually, indicating a contraction in its core business over recent years. Such trends suggest challenges in sustaining profitability and growth, which weigh heavily on the quality score.
Valuation Perspective
Despite the weak quality metrics, the valuation grade for Quest Capital Markets Ltd is classified as very attractive. This suggests that the stock is trading at a price level that could be considered a bargain relative to its earnings, assets, or cash flow. Investors looking for value opportunities might find this aspect appealing, as the market appears to have priced in the company’s difficulties. However, attractive valuation alone does not offset the risks posed by poor fundamentals and financial stagnation.
Financial Trend Analysis
The financial grade for the company is flat, reflecting a lack of significant improvement or deterioration in recent financial performance. The latest quarterly results, reported in September 2025, showed no key negative triggers but also no meaningful growth or recovery signals. This stagnation in financial metrics suggests that the company is struggling to generate momentum, which is a concern for investors seeking growth or turnaround stories.
Technical Outlook
From a technical standpoint, Quest Capital Markets Ltd is currently rated bearish. The stock’s price performance over various time frames highlights this trend: it has declined by 30.60% over the past year and 29.59% over six months, with a 3-month drop of 20.66%. Even the more recent one-month and year-to-date returns remain negative at -8.28% and -11.00%, respectively. Although the stock recorded a modest 2.47% gain on the day of 05 February 2026, the overall technical indicators point to sustained downward pressure, signalling weak investor sentiment and limited buying interest.
Stock Returns and Market Context
As of 05 February 2026, Quest Capital Markets Ltd’s stock returns paint a challenging picture. The one-day gain of 2.47% is a small positive note amid a broader trend of declines. Over the past week, the stock fell by 0.69%, and the one-month return was down 8.28%. These figures underscore the persistent selling pressure and the absence of a clear recovery catalyst. Compared to broader market indices and sector peers, Quest Capital’s performance remains subdued, reinforcing the rationale behind the Strong Sell rating.
Implications for Investors
For investors, the Strong Sell rating serves as a cautionary signal. It suggests that holding or acquiring shares in Quest Capital Markets Ltd carries heightened risk, given the company’s weak fundamentals, stagnant financial trends, and bearish technical outlook. While the stock’s attractive valuation might tempt value-focused investors, the underlying quality and trend concerns imply that the company faces significant headwinds. Investors should carefully weigh these factors and consider their risk tolerance before making investment decisions related to this stock.
Summary of Current Position
In summary, Quest Capital Markets Ltd’s current Strong Sell rating by MarketsMOJO, last updated on 12 August 2025, reflects a comprehensive assessment of its below-average quality, very attractive valuation, flat financial trend, and bearish technical indicators. All financial metrics and returns discussed are current as of 05 February 2026, providing an up-to-date view of the company’s status. This rating advises investors to exercise caution and consider alternative opportunities within the capital markets sector.
Handpicked from 50, scrutinized by experts – Our recent selection, this Mid Cap from Bank - Public, is already delivering results. Don't miss next month's pick!
- - Expert-scrutinized selection
- - Already delivering results
- - Monthly focused approach
Company Profile and Market Capitalisation
Quest Capital Markets Ltd operates within the capital markets sector, classified as a microcap company. This smaller market capitalisation often implies higher volatility and liquidity risks, which investors should consider alongside the company’s fundamental and technical outlook. The microcap status can also limit institutional interest and analyst coverage, potentially contributing to the stock’s subdued performance and rating.
Mojo Score and Grade Details
The company’s Mojo Score currently stands at 26.0, categorised as Strong Sell. This score reflects a decline of 6 points from the previous grade of Sell, which was adjusted on 12 August 2025. The score aggregates multiple factors including quality, valuation, financial trends, and technicals to provide a holistic view of the stock’s investment appeal. The downward movement in the score underscores the increasing concerns about the company’s prospects.
Outlook and Considerations
Looking ahead, investors should monitor any changes in Quest Capital Markets Ltd’s operational performance, sector dynamics, and broader market conditions. Improvements in sales growth, profitability, or technical momentum could alter the current assessment. Conversely, continued stagnation or deterioration would likely reinforce the Strong Sell stance. Given the current data as of 05 February 2026, the stock remains a high-risk proposition within the capital markets space.
Conclusion
In conclusion, Quest Capital Markets Ltd’s Strong Sell rating by MarketsMOJO is grounded in a thorough analysis of its current fundamentals and market behaviour. While the valuation appears attractive, the company’s weak quality metrics, flat financial trends, and bearish technical signals justify a cautious approach. Investors are advised to consider these factors carefully and align their portfolio strategies accordingly.
Unlock special upgrade rates for a limited period. Start Saving Now →
