Aryaman Financial Services Receives 'Hold' Rating from MarketsMOJO After Impressive Quarterly Results

Aryaman Financial Services, a microcap finance company, has recently received a 'Hold' rating from MarketsMOJO on November 4, 2024. This upgrade comes after the company reported positive results in the quarter ending June 2024. The company's PBT LESS OI(Q) has grown by an impressive 1569.44%, while its PAT(Q) has seen a growth of 395.9%. Additionally, the company's CASH AND CASH EQUIVALENTS(HY) has reached its highest at Rs 73.06 crore.
Technically, the stock is currently in a bullish range and has shown improvement from being mildly bullish on November 4, 2024. Multiple factors such as MACD, Bollinger Band, KST, DOW, and OBV are all indicating a bullish trend for the stock.

Over the last 3 years, Aryaman Financial Services has consistently outperformed BSE 500 and has generated a return of 172.92%. However, the company's long-term fundamental strength is weak with an average Return on Equity (ROE) of 9.30%. Its net sales have also shown poor growth at an annual rate of -4.34%.

The stock currently has a very expensive valuation with a Price to Book Value of 7. Despite this, it is trading at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 172.92%, while its profits have risen by 431.5%. This gives the company a PEG ratio of 0.1, indicating that it may be undervalued.

It is worth noting that despite being a microcap company, domestic mutual funds hold only 0% of the company. This could signify that they are not comfortable with the current price or the business, as domestic mutual funds have the capability to conduct in-depth research on companies.

Overall, Aryaman Financial Services has shown strong growth in the recent quarter, but its long-term fundamental strength and valuation may be a cause for concern. Investors should carefully consider all factors before making any investment decisions.