Adroit Infotech Receives 'Hold' Rating from MarketsMOJO After Positive Results and Attractive Valuation

Adroit Infotech, a microcap company in the animation industry, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes after the company reported positive results in June 2024, with a 36.42% growth in net sales and a higher PAT of Rs 2.32 crore.
Technically, the stock is currently in a mildly bullish range and has shown improvement from a sideways trend on 23rd August 2024. The MACD and Bollinger Band technical factors also indicate a bullish trend.

At a ROE of 8.8, Adroit Infotech has a very attractive valuation with a price to book value of 1.3. The stock is currently trading at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 24.70%, while its profits have increased by 54.6%. The PEG ratio of the company is also low at 0.2.

However, the company's majority shareholders are non-institutional, which may indicate a lack of confidence from larger investors. Additionally, Adroit Infotech has weak long-term fundamental strength with a -19.18% CAGR growth in operating profits over the last 5 years. The company's ability to service its debt is also weak, with a poor EBIT to Interest (avg) ratio of 0.89. Furthermore, the company has a low Return on Equity (avg) of 7.26%, indicating low profitability per unit of shareholders' funds.

In the last year, Adroit Infotech has underperformed the market, with a return of 24.70% compared to the market's (BSE 500) return of 37.48%. While the recent positive results and attractive valuation may make the stock a 'Hold' for now, investors should closely monitor the company's financial performance and market trends before making any investment decisions.