Yamini Investment Company Downgraded to 'Sell' by MarketsMOJO, Despite Recent Positive Results

Yamini Investment Company, a microcap finance company, has recently been downgraded to a 'Sell' by MarketsMOJO on October 14, 2024. This decision was based on several factors, including weak long-term fundamental strength with an average Return on Equity (ROE) of 0.30% and poor long-term growth with an annual operating profit growth rate of 20.87%. Additionally, the stock has an expensive valuation with a price to book value of 1.1 and is currently trading at a discount compared to its historical valuations.
Despite generating a return of 93.42% in the past year, the company's profits have only risen by 105%, resulting in a low PEG ratio of 0.1. However, there have been some positive results for the company in June 2024, with higher net sales of Rs 6.64 crore and the highest PBDIT and PBT LESS OI in the quarter at Rs 1.58 crore.

From a technical standpoint, the stock is currently in a mildly bullish range, with both the MACD and KST technical factors showing a bullish trend. The majority of shareholders in the company are non-institutional investors.

Despite its recent downgrade, Yamini Investment Company has a track record of market-beating performance in both the long-term and near-term. In addition to its 93.42% return in the past year, the stock has also outperformed the BSE 500 index in the last 3 years, 1 year, and 3 months. Investors should carefully consider these factors before making any decisions regarding this microcap finance company.