Transcorp International Receives 'Sell' Rating from MarketsMOJO Due to Weak Fundamentals and Expensive Valuation

Transcorp International, a microcap trading company, has recently received a 'Sell' rating from MarketsMOJO. This downgrade is based on the company's weak long-term fundamental strength, with an average Return on Equity (ROE) of 4.71% and poor long-term growth as Net Sales has only grown by an annual rate of 1.72%. Additionally, the stock has a very expensive valuation with a 2.2 Price to Book Value and is trading at a premium compared to its historical valuations.
Despite generating a return of 28.18% in the past year, the company's profits have only risen by 210%, resulting in a low PEG ratio of 0.1. This indicates that the stock is overvalued and may not be a good investment option. Furthermore, Transcorp International has underperformed the market (BSE 500) in the last year, with the market generating a return of 38.66%.

In terms of other factors, the company did show positive results in December 2023, with the highest PBT LESS OI(Q) at Rs 1.52 crore, PAT(Q) at Rs 1.96 crore, and EPS(Q) at Rs 0.62. However, the stock is currently in a mildly bullish range, with multiple technical indicators such as MACD, Bollinger Band, KST, and OBV showing bullish signals.

It is worth noting that the majority shareholders of Transcorp International are promoters, which may have influenced the company's current valuation. Overall, with the recent 'Sell' rating from MarketsMOJO and the company's weak long-term fundamentals, investors may want to reconsider their investment in Transcorp International.