R S Software (India) Downgraded to 'Sell' by MarketsMOJO, Despite Recent Positive Results

R S Software (India) is a microcap IT software company that has recently been downgraded to 'Sell' by MarketsMOJO. This downgrade is due to weak long-term fundamental strength, poor growth in net sales, and a weak ability to service its debt. The company's valuation is also considered very expensive with a high price to book value.
Institutional investors have also decreased their stake in the company, indicating a lack of confidence in its performance. However, the company has shown positive results in the last 5 consecutive quarters, with a growth in net sales and profits. Its return on capital employed is also at a high of 36.94%.

Technically, the stock is in a mildly bullish range with its MACD and KST technical factors also showing a bullish trend. Over the last 3 years, the stock has consistently outperformed the BSE 500 index, generating a return of 547.10%.

While the stock has shown strong returns in the past year, it is important to note that its profits have only risen by 322.3%, resulting in a low PEG ratio of 0.1. This, along with the company's weak long-term fundamentals, makes it a 'Sell' according to MarketsMOJO. Investors should carefully consider these factors before making any investment decisions.