Step Two Corporation Receives 'Sell' Rating from MarketsMOJO Due to Weak Fundamentals and Technical Indicators

Step Two Corporation, a microcap company in the finance/NBFC industry, has recently received a 'Sell' rating from MarketsMOJO on August 28, 2024. This downgrade is based on several factors, including weak long-term fundamental strength with an average Return on Equity (ROE) of 3.49% and poor long-term growth with an annual operating profit growth rate of 8.73%.
Technically, the stock is currently in a Mildly Bearish range, with a deteriorating trend since August 28, 2024, resulting in a -4.99% return. The Bollinger Band and KST technical factors also indicate a bearish trend.

In terms of financials, Step Two Corporation has shown its highest PBDIT(Q) at Rs 2.10 crore, PBT LESS OI(Q) at Rs 2.11 crore, and PAT(Q) at Rs 1.75 crore. With an ROE of 23.2, the company has an attractive valuation with a 2.6 Price to Book Value. It is currently trading at a fair value compared to its historical valuations. Additionally, while the stock has generated a return of 110.33% in the past year, its profits have only risen by 68%, resulting in a low PEG ratio of 0.1.

The majority shareholders of Step Two Corporation are its promoters, indicating their confidence in the company's performance. The stock has also outperformed the market (BSE 500) with a return of 110.33% in the last year, compared to the market's return of 39.22%.

Overall, the downgrade to 'Sell' by MarketsMOJO is based on the company's weak long-term fundamentals and technical indicators. Investors should carefully consider these factors before making any investment decisions.