Acme Resources Receives 'Hold' Rating After Positive Results and Bullish Trend

Acme Resources, a microcap finance company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes after the company reported positive results in September 2024, following two consecutive negative quarters. The company's PBT LESS OI(Q) has shown a significant growth of 1464.29%, with the highest PAT(Q) and EPS(Q) at Rs 2.09 crore and Rs 0.81 respectively.
Technically, the stock is currently in a bullish range and has shown improvement from a mildly bullish trend on 28-Nov-24. Multiple factors such as MACD, Bollinger Band, KST, DOW, and OBV have contributed to this positive trend. The majority shareholders of Acme Resources are its promoters, indicating their confidence in the company's performance.

The stock has consistently outperformed BSE 500 in the last three annual periods, with a remarkable return of 126.49% in the last year alone. However, the company's long-term fundamental strength is weak, with an average ROE of 3.77%. Its current ROE of 2.5 also indicates a very expensive valuation, with a price to book value of 1.6. The stock is currently trading at a premium compared to its historical valuations.

Despite its impressive returns in the past year, Acme Resources has seen a decline of -74.2% in its profits. This could be a cause for concern for investors, and MarketsMOJO's 'Hold' rating reflects this uncertainty. As a microcap company in the finance industry, Acme Resources may have potential for growth, but it is important to consider all factors before making any investment decisions.