Share India Securities Downgraded to 'Sell' by MarketsMOJO, Technical Factors Indicate Bearish Trend

Share India Securities, a midcap finance and NBFC company, has recently been downgraded to a 'Sell' by MarketsMOJO on November 11, 2024. This decision was based on various technical factors, including the stock being in a bearish range, with a deteriorating trend since November 11, 2024, resulting in a -2.11% return. Additionally, the MACD and Bollinger Band technical factors also indicate a bearish trend.
Furthermore, 37.09% of the promoter shares are pledged, which can put additional downward pressure on the stock prices in falling markets. In the past year, while the market (BSE 500) has generated a return of 30.30%, Share India Securities has underperformed significantly with a negative return of -8.20%.

However, the company does have strong long-term fundamental strength, with an average Return on Equity (ROE) of 32.09%. It has also shown healthy long-term growth, with an annual growth rate of 52.79% in net sales and 95.77% in operating profit. The company has also declared positive results for the last 18 consecutive quarters.

Moreover, Share India Securities has a low debt-equity ratio of 0.15 times and has shown a growth of 23.58% in net sales in the last quarter, with the highest PBDIT of Rs 186.44 crore. With a ROE of 20.3, the stock is currently trading at a very attractive valuation with a price to book value of 2.7. It is also trading at a discount compared to its average historical valuations.

Despite the recent downgrade, Share India Securities has shown a rise in profits by 16.9% in the past year, indicating potential for growth in the future. However, investors should carefully consider all factors before making any investment decisions.