Supra Pacific Management Consultancy Downgraded to 'Sell' by MarketsMOJO Due to Weak Fundamentals and Expensive Valuation

Supra Pacific Management Consultancy, a microcap company in the finance/NBFC industry, has recently been downgraded to a 'Sell' by MarketsMOJO on 2024-01-23. This decision was based on the company's weak long-term fundamental strength, with an average return on equity (ROE) of 3.20%. Additionally, the stock has a very expensive valuation with a price to book value of 2.5, trading at a premium compared to its historical valuations.
Despite generating a return of 10.98% in the past year, the company's profits have only risen by 30%, resulting in a low PEG ratio of 0.1. This indicates that the stock may be overvalued and not performing as well as the market (BSE 500) which has seen returns of 23.79% in the same time period.

Furthermore, Supra Pacific Management Consultancy has underperformed the market in the last year, with a return of 10.98%. However, the company has declared positive results for the last four consecutive quarters, with a significant growth in net sales (113.16%) and PBDIT (Rs 3.04 cr).

From a technical standpoint, the stock is currently in a mildly bullish range, with multiple factors such as RSI, MACD, and Bollinger Band indicating a bullish trend.

In conclusion, while Supra Pacific Management Consultancy may have shown some positive results in the past year, its weak long-term fundamentals and expensive valuation make it a 'Sell' according to MarketsMOJO. Investors should carefully consider these factors before making any decisions regarding this microcap company in the finance/NBFC industry.