5Paisa Capital Receives 'Hold' Rating from MarketsMOJO, Strong Long-Term Growth and Positive Technical Indicators

5Paisa Capital, a smallcap company in the finance/NBFC industry, has recently received a 'Hold' rating from MarketsMOJO on September 16, 2024. This upgrade is based on the company's strong long-term fundamental strength, with a 34.62% CAGR growth in operating profits.
In addition, the company has shown healthy long-term growth with a 40.44% annual growth rate in net sales and a 34.62% growth in operating profit. This positive trend was also reflected in the company's recent results for the quarter ending June 2024, with a 20.92% growth in net sales and the highest PBDIT of Rs 37.31 crore. The operating profit to net sales ratio was also at its highest at 36.49%.

From a technical standpoint, the stock is currently in a mildly bullish range, with the technical trend improving from sideways on September 16, 2024. Multiple factors, such as MACD, Bollinger Band, and KST, indicate a bullish outlook for the stock.

Moreover, the company has a high institutional holding of 22.95%, indicating that these investors have better capabilities and resources to analyze the company's fundamentals compared to retail investors.

However, with a ROE of 10.1, the stock is currently trading at an expensive valuation with a price to book value of 3.1. This is higher than its average historical valuations. Additionally, while the stock has generated a return of 23.28% in the past year, its profits have only risen by 18.3%, resulting in a PEG ratio of 1.8.

Overall, 5Paisa Capital has underperformed the market in the last year, with a return of 23.28% compared to the market's (BSE 500) return of 34.97%. This may be a cause for concern for investors, but the company's strong long-term fundamentals and positive technical indicators make it a 'Hold' for now.