Alankit Receives 'Hold' Rating from MarketsMOJO, Shows Strong Performance in Q1 2024

Alankit, a microcap company in the finance/NBFC industry, has recently received a 'Hold' rating from MarketsMOJO on July 1, 2024. This upgrade is based on the company's positive results in the quarter ending March 2024, with a 40.6% growth in PAT(Q) at Rs 6.62 crore and the highest CASH AND CASH EQUIVALENTS(HY) at Rs 68.27 crore. Additionally, the PBDIT(Q) has also reached its highest at Rs 10.37 crore.
From a technical standpoint, the stock is currently in a bullish range and has shown a significant improvement since June 27, 2024, generating a return of 23.39%. Multiple factors such as MACD, Bollinger Band, and KST are also indicating a bullish trend for the stock.

Moreover, there has been a rise in promoter confidence as they have increased their stake in the company by 2.13% in the previous quarter, currently holding 54.15% of the company. This increase in stake is a positive sign of high confidence in the future of the business.

Alankit has also outperformed the market (BSE 500) with a return of 155.28% in the last year, compared to the market's return of 37.64%. However, the company's long-term fundamental strength is weak, with an average ROE of 11.77% and a poor growth rate of -12.41% in operating profit. The stock also has a high valuation with a price to book value of 2.3 and a PEG ratio of 3.2, indicating an expensive valuation compared to its historical average.

In conclusion, while Alankit has shown strong performance in the past year and has received a 'Hold' rating, investors should consider the company's weak long-term fundamentals and expensive valuation before making any investment decisions.