WSFX Global Pay Receives 'Sell' Rating Due to Weak Long-Term Fundamentals and Slow Growth

Apr 18 2024 06:17 PM IST
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WSFX Global Pay, a microcap finance company, has been downgraded to a 'Sell' rating by MarketsMojo due to weak long-term fundamentals. Despite positive results in the last 8 quarters, the company's growth in profits and net sales has been slow. However, the stock is currently in a mildly bullish range and has consistently outperformed BSE 500. Investors are advised to do their own research before making any investment decisions.
WSFX Global Pay, a microcap finance 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 2.06% and poor long-term growth in Net Sales, which has only grown at an annual rate of 24.50%.

Despite declaring positive results for the last 8 consecutive quarters, the company's PAT (HY) has only grown at 137.01% and NET SALES (HY) at 58.61%. The stock is currently in a mildly bullish range, with multiple factors such as MACD, Bollinger Band, and KST being bullish.

However, with an ROE of 11.9, the stock is fairly valued with a 3.1 Price to Book Value. It is also trading at a discount compared to its average historical valuations. While the stock has generated a return of 148.97% in the past year, its profits have only risen by 447.1%, resulting in a low PEG ratio of 0.1.

The majority shareholders of WSFX Global Pay are the promoters, indicating their confidence in the company. Additionally, the stock has consistently outperformed BSE 500 in the last 3 annual periods, further showcasing its potential for growth.

In conclusion, while WSFX Global Pay may have received a 'Sell' rating, it is important to consider all factors before making any investment decisions. The company's consistent returns and majority ownership by promoters may indicate potential for future growth. However, it is important to keep in mind the weak long-term fundamentals and slow growth in Net Sales. Investors are advised to do their own research and make informed decisions.
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