Yamini Investment Company Downgraded to 'Sell' by MarketsMOJO Due to Weak Fundamentals

Yamini Investment Company, a microcap finance company, has recently been downgraded to a 'Sell' by MarketsMOJO on November 4, 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 1.3 and is currently trading at a discount compared to its historical valuations.
Despite generating a return of 134.29% in the past year, the company's profits have only risen by 105%, resulting in a low PEG ratio of 0.2. However, there have been some positive developments for Yamini Investment Company, such as higher net sales of Rs 6.64 crore and the highest PBDIT and PBT LESS OI in the last quarter.

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.

In terms of performance, Yamini Investment Company has not only outperformed the market in the near term but also in the long term. In the last 3 years, 1 year, and 3 months, the stock has outperformed the BSE 500 index. However, considering the current market conditions and the company's weak fundamentals, MarketsMOJO has downgraded the stock to a 'Sell'. Investors are advised to carefully consider these factors before making any investment decisions.