Saven Technologies Downgraded to 'Sell' Rating

Saven Technologies, a microcap IT software company, has recently been downgraded to a 'Sell' by MarketsMOJO on October 30, 2023. This decision was based on weak long-term fundamental strength, with a 8.87% CAGR growth in net sales over the last 5 years. In addition, the company reported negative results in September 2023, with a -50.88% growth in PAT(HY) and the lowest PBDIT(Q) and PBT LESS OI(Q) at Rs 1.12 cr and Rs 0.32 cr respectively.
The stock has also underperformed the market in the last 1 year, with a return of only 6.61% compared to the market's 16.72% (BSE 500). Other factors to consider include the stock being in a mildly bullish range and its MACD and KST technical factors also being bullish. However, with a ROE of 13.5, the stock is currently fairly valued with a price to book value of 2.7. It is also trading at a premium compared to its average historical valuations.

It is worth noting that while the stock has generated a return of 6.61% in the past year, its profits have fallen by -36.2%. The majority shareholders of Saven Technologies are non-institutional investors. This news serves as a cautionary reminder for investors to carefully consider the company's financial performance before making any investment decisions.