Siddha Ventures downgraded to 'Sell' by MarketsMOJO due to poor growth and declining profits

Siddha Ventures, a microcap finance company, has recently been downgraded to a 'Sell' by MarketsMOJO on May 30, 2024. This decision was based on several factors, including poor long-term growth with a -78.40% annual growth rate in net sales and 0% operating profit. In addition, the company's PBT LESS OI(Q) at Rs 0.60 crore has fallen by -97.04% in the last quarter.
Despite these negative indicators, Siddha Ventures does have some strengths. It has a strong long-term fundamental strength with an average return on equity (ROE) of 27.19%. The stock is also technically in a mildly bullish range, with multiple factors such as MACD, Bollinger Band, and KST showing bullish signals.

However, with an ROE of 2.1, the stock is currently trading at an attractive valuation with a price to book value of 0.3. This is lower than its average historical valuations. It is worth noting that while the stock has generated a return of 173.50% in the past year, its profits have fallen by -96%.

The majority of shareholders in Siddha Ventures are non-institutional investors. Despite this, the stock has outperformed the market (BSE 500) with a return of 173.50% compared to the market's 32.41% return in the last year.

In conclusion, while Siddha Ventures may have some strengths, the recent downgrade to 'Sell' by MarketsMOJO and the company's poor long-term growth and declining profits should be taken into consideration before making any investment decisions.