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

Step Two Corporation, a microcap finance company, has recently received a 'Sell' rating from MarketsMOJO. 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 rate of 20.11% for operating profit.
The stock is also currently in a Mildly Bearish range, with technical trends deteriorating since October 11, 2024, resulting in a -9.04% return. Multiple indicators, such as MACD, Bollinger Band, and KST, are also showing a bearish outlook for the stock.

In terms of financials, Step Two Corporation has recorded 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. However, with an ROE of 23.2, the stock is currently trading at a Very Attractive valuation with a 2.4 Price to Book Value. It is also trading at a discount compared to its average historical valuations.

Despite generating a return of 59.58% in the past year, the company's profits have only risen by 68%, resulting in a PEG ratio of 0.1. The majority shareholders of Step Two Corporation are its promoters.

In terms of performance, Step Two Corporation has not only outperformed BSE 500 in the last year, but also in the last 3 years, 1 year, and 3 months. However, with the recent downgrade from MarketsMOJO, investors may want to carefully consider their options before investing in this microcap finance company.