Quest Capital Markets Receives 'Sell' Rating from MarketsMOJO Due to Weak Fundamentals

Quest Capital Markets, a microcap finance company, has recently received a 'Sell' rating from MarketsMOJO on July 18, 2024. This downgrade is due to the company's weak long-term fundamental strength, with an average Return on Equity (ROE) of 5.54%.
Despite positive results in March 2024, with the company's CASH AND CASH EQUIVALENTS(HY) at its highest at Rs 29.69 crore and PBDIT(Q) and PBT LESS OI(Q) also at their highest at Rs 22.10 crore, the stock is still considered a 'Sell'.

Technically, the stock is in a mildly bullish range with its MACD and KST technical factors also showing bullish signals. However, with an ROE of 2, the stock is fairly valued with a price to book value of 0.4.

It is worth noting that the stock is currently trading at a premium compared to its average historical valuations. In the past year, the stock has generated a return of 41.48%, but its profits have only risen by 6.8%. This results in a PEG ratio of 3, indicating that the stock may be overvalued.

The majority shareholders of Quest Capital Markets are its promoters. Despite its market-beating performance in the long term and near term, with a return of 41.48% in the last year and outperforming BSE 500 in the last 3 years, 1 year, and 3 months, the company's weak fundamental strength has led to a 'Sell' rating from MarketsMOJO. Investors should carefully consider these factors before making any investment decisions.