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

Supra Pacific Management Consultancy, a microcap company in the finance/NBFC industry, has recently been downgraded to a 'Sell' by MarketsMOJO on March 4, 2024. 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 is currently trading at a premium compared to its historical valuations, with a price to book value of 2.6.
Despite the stock's impressive return of 65.74% in the past year, its profits have only risen by 25%, resulting in a PEG ratio of 2.2. This indicates that the stock may be overvalued and not a good investment option at this time.

In terms of other factors, Supra Pacific Management Consultancy has declared positive results for the last five consecutive quarters. Its net sales have grown by 113.01% to Rs 13.10 crore, and its PBDIT (quarterly) and PBT less OI (quarterly) have reached their highest levels at Rs 3.88 crore and Rs 0.65 crore, respectively.

Technically, the stock is currently in a mildly bullish range, with its MACD and KST technical factors also showing bullish signals. However, it is important to note that the stock's market-beating performance may not be sustainable in the long run.

In conclusion, while Supra Pacific Management Consultancy has shown strong growth in the past year, its current valuation and weak fundamental strength make it a 'Sell' according to MarketsMOJO. Investors should carefully consider these factors before making any investment decisions.