Supra Pacific Management Consultancy Receives 'Sell' Rating from MarketsMOJO Due to Weak Fundamentals and High Valuation

Supra Pacific Management Consultancy, a microcap company in the finance/NBFC industry, has recently received a 'Sell' rating from MarketsMOJO on May 3, 2024. This downgrade is based on the company's weak long-term fundamental strength, with an average return on equity (ROE) of only 3.20%. Additionally, the stock is currently trading at a premium compared to its historical valuations, with a price to book value of 3.8.
Despite generating a return of 34.48% over the past year, the company's profits have only risen by 25%. This indicates that the stock may be overvalued and not performing as well as expected. However, the company has declared positive results for the last 5 consecutive quarters, with a significant growth in net sales of 113.01% at Rs 13.10 crore. Its PBDIT (quarterly) is also at its highest at Rs 3.88 crore, while PBT less OI (quarterly) is at Rs 0.65 crore.

From a technical standpoint, the stock is currently in a mildly bullish range, with both its MACD and KST technical factors showing a bullish trend. However, it is important to note that this rating is based on the company's current performance and may change in the future.

In conclusion, while Supra Pacific Management Consultancy may have shown positive results in the past, its weak long-term fundamental strength and expensive valuation make it a 'Sell' according to MarketsMOJO. Investors should carefully consider these factors before making any investment decisions.