Secmark Consultancy Downgraded to 'Sell' by MarketsMOJO, Weak Financials Raise Concerns

Secmark Consultancy, a microcap IT software company, has recently been downgraded to a 'Sell' by MarketsMOJO on February 12, 2024. This decision was based on the company's weak long-term fundamental strength, with a -271.00% CAGR growth in operating profits over the last 5 years. Additionally, the company's ability to service its debt is also a concern, with a poor EBIT to Interest (avg) ratio of -0.15.
The company's recent financial results for December 2023 have also been flat, indicating a lack of growth. Furthermore, the stock is considered risky due to its negative EBITDA and trading at a higher risk compared to its historical valuations. In the past year, while the stock has generated a return of -4.81%, its profits have fallen by -298%.

Another factor to consider is that the stock has underperformed the market in the last year. While the market (BSE 500) has generated returns of 30.22%, Secmark Consultancy has significantly underperformed with negative returns of -4.81%.

From a technical standpoint, the stock is currently in a mildly bullish range, with both the KST and DOW technical factors showing a bullish trend. However, it is important to note that the majority of the company's shareholders are promoters, which may impact the stock's performance.

In conclusion, based on the recent downgrade by MarketsMOJO and the company's weak financial performance, it may be wise for investors to consider selling their shares in Secmark Consultancy.