Tilak Ventures Receives 'Sell' Rating from MarketsMOJO, Promoters Decrease Stake

Tilak Ventures, a microcap company in the finance/NBFC industry, has recently received a 'Sell' rating from MarketsMOJO on May 7, 2024. This downgrade is based on several factors, including weak long-term fundamental strength with an average Return on Equity (ROE) of 1.96% and poor long-term growth with an annual net sales growth rate of 48.17%.
In addition, the company's promoters have decreased their stake by -2.64% in the previous quarter, which may indicate a lack of confidence in the future of the business. However, the company has declared positive results for the last 5 consecutive quarters, with net sales growing at a rate of 92.98% and a higher PAT of Rs 3.11 crore.

From a technical standpoint, the stock's trend is currently sideways, with no clear price momentum. The Bollinger Band has also been sideways since May 7, 2024. However, with an ROE of 5.7 and a price to book value of 1.5, the stock is currently trading at an attractive valuation compared to its historical average. Additionally, while the stock has generated a return of 28.27% in the past year, its profits have risen by 303.9%, resulting in a low PEG ratio of 0.1.

Overall, the recent downgrade to 'Sell' by MarketsMOJO and the decrease in promoter confidence may be cause for concern for investors considering Tilak Ventures. However, the company's positive financial results and attractive valuation may still make it a viable investment option for some. As always, it is important for investors to conduct their own research and make informed decisions when it comes to investing in the stock market.