Vakrangee Downgraded to 'Sell' by MarketsMOJO Due to Poor Growth and Expensive Valuation

Vakrangee, a smallcap IT software company, has recently been downgraded to a 'Sell' by MarketsMOJO on March 5, 2024. This decision was based on the company's poor long-term growth, negative financial results, and expensive valuation.
Over the last 5 years, Vakrangee has seen a decline in its net sales by an annual rate of -42.21% and operating profit by -58.48%. In addition, the company has declared negative results for the last 5 consecutive quarters. Its interest has grown at a high rate of 278.29%, while its profit after tax has fallen by -79.44%. The net sales for the last quarter have also fallen by -49.5%.

With a ROCE of 5.2, Vakrangee's valuation is considered very expensive with an enterprise value to capital employed ratio of 18.9. The stock is currently trading at a premium compared to its historical valuations. Despite generating a return of 16.21% in the past year, the company's profits have fallen by -94.4%.

Institutional investors have also decreased their stake in Vakrangee by -0.68% in the previous quarter, collectively holding only 9.59% of the company. This indicates a lack of confidence in the company's fundamentals. Furthermore, Vakrangee has underperformed the market (BSE 500) in the last year, with a return of only 16.21% compared to the market's 37.16%.

On a positive note, Vakrangee has a low debt to equity ratio (avg) of 0.04 times. Technically, the stock is in a mildly bullish range with its MACD and KST technical factors also showing a bullish trend. However, these factors do not outweigh the negative aspects of the company's performance.

In conclusion, based on the current information and analysis, it is recommended to sell Vakrangee stock. Investors should be cautious and consider the company's poor long-term growth, negative financial results, and expensive valuation before making any investment decisions.