Tracxn Technologies Downgraded to 'Sell' by MarketsMOJO Due to Negative Results and Underperformance

Tracxn Technologies, a microcap IT software company, has recently been downgraded to a 'Sell' by MarketsMOJO. This decision was based on the company's negative results in March 2024, with a -88.11% growth in PAT (HY) and non-operating income (Q) accounting for 66.67% of PBT. Additionally, the company's ROE of 9.2 indicates a very expensive valuation with a 12.3 price to book value.
Furthermore, the stock has underperformed the market in the last year, with a return of only 20.95% compared to the market's 35.33%. This is despite the company's high management efficiency, with a ROE of 27.72%, and a low debt to equity ratio of 0 times.

Institutional investors have also decreased their stake in the company by -7.66% over the previous quarter, holding only 9.07% collectively. This suggests that these investors, who have better resources to analyze company fundamentals, have also lost confidence in Tracxn Technologies.

The technical trend for the stock is currently sideways, indicating no clear price momentum. This trend has deteriorated since May 28, 2024, when it was mildly bullish, and has generated a -0.94% return since then. Multiple factors, such as MACD, Bollinger Band, and KST, also suggest a sideways trend for the stock.

Overall, while Tracxn Technologies has shown healthy long-term growth with an annual rate of 216.02% in operating profit, the recent negative results and underperformance in the market have led to a 'Sell' rating from MarketsMOJO. Investors should carefully consider these factors before making any decisions regarding this microcap IT software company.