Trishakti Industries Downgraded to 'Sell' by MarketsMOJO, Stock Overvalued and Showing Weak Long-Term Fundamentals

Trishakti Industries, a microcap finance company, has recently been downgraded to a 'Sell' by MarketsMOJO on November 25, 2024. This decision was based on weak long-term fundamental strength, with an average Return on Equity (ROE) of 2.92% and poor long-term growth, with operating profit growing at an annual rate of only 7.57%. Additionally, the stock has a very expensive valuation with a price to book value of 14.2, making it trading at a discount compared to its average historical valuations.
Despite generating a return of 433.38% in the past year, the company's profits have only risen by 16%, resulting in a PEG ratio of 2.3. This indicates that the stock may be overvalued and not a good investment option at this time.

On a positive note, Trishakti Industries has declared positive results for the last 5 consecutive quarters, with net sales growing at a rate of 27.41% and a higher PAT of Rs 2.24 crore in the last half year. Technically, the stock is in a mildly bullish range, with multiple factors such as MACD, KST, DOW, and OBV showing bullish signals.

The majority of shareholders in Trishakti Industries are non-institutional investors, and the stock has shown market-beating performance in both the long-term and near-term. In addition to generating high returns in the past year, the stock has also outperformed BSE 500 in the last 3 years, 1 year, and 3 months.

However, it is important to note that this is not a recommendation to buy or sell the stock, as it is based on fact-based analysis and not influenced by any external factors such as investor interest or expert opinions. Investors should conduct their own research and make informed decisions before investing in Trishakti Industries.