AD Manum Finance shows strong growth and technical indicators, but long-term fundamentals remain weak.

Nov 02 2024 08:06 AM IST
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MarketsMojo has upgraded its stock call on AD Manum Finance to 'Hold' based on its positive financial results and technical indicators. The company has shown consistent growth in the last three quarters, with a 100.92% increase in PAT and a 58.72% increase in net sales. The stock has also performed well in the past year, generating a return of 94.41%. However, the company has a weak long-term fundamental strength, with an average ROE of 5.53%.
MarketsMOJO has upgraded its stock call on AD Manum Finance to 'Hold' based on its positive financial results and technical indicators. The company has shown consistent growth in the last three quarters, with a 100.92% increase in PAT and a 58.72% increase in net sales. The stock is also in a bullish range and has generated a return of 4.92% since the technical trend improved on October 31, 2024.

In terms of valuation, AD Manum Finance has a fair price to book value of 1.1 and is trading at a fair value compared to its historical valuations. The stock has also performed well in the past year, generating a return of 94.41% while its profits have risen by 89.1%. This is reflected in the company's low PEG ratio of 0.1.

The majority shareholders of AD Manum Finance are its promoters, indicating their confidence in the company's performance. The stock has consistently outperformed the BSE 500 index in the last three annual periods, further highlighting its strong performance.

However, MarketsMOJO notes that the company has a weak long-term fundamental strength, with an average ROE of 5.53%. This is due to its poor long-term growth, with net sales growing at an annual rate of 7.11%. Therefore, while the stock is currently a 'Hold', investors should keep an eye on the company's long-term growth potential.
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