Assam Entrade Ltd is Rated Hold

Current Rating Overview

MarketsMOJO’s 'Hold' rating for Assam Entrade Ltd indicates a neutral stance, suggesting that investors should neither aggressively buy nor sell the stock at this time. This rating reflects a balance of strengths and weaknesses across key evaluation parameters, including quality, valuation, financial trends, and technical indicators. The company’s Mojo Score currently stands at 50.0, a moderate level that supports this cautious recommendation.

Quality Assessment

As of 09 February 2026, Assam Entrade Ltd’s quality grade is assessed as below average. This is primarily due to its weak long-term fundamental strength. The company’s average Return on Equity (ROE) over recent years is a modest 2.88%, signalling limited profitability relative to shareholder equity. Furthermore, operating profit has declined at an annualised rate of -7.53%, indicating challenges in sustaining growth. These factors suggest that while the company remains operationally viable, it faces headwinds in generating robust returns for investors.

Valuation Considerations

The valuation grade for Assam Entrade Ltd is classified as very expensive. Currently, the stock trades at a Price to Book Value (P/BV) ratio of 1.9, which is a premium compared to its peers’ historical averages. Despite this elevated valuation, the company’s ROE remains low at 2.3%, raising questions about whether the premium pricing is justified by underlying financial performance. Investors should be cautious, as paying a high valuation for a company with subdued profitability can increase downside risk if growth expectations are not met.

Financial Trend Analysis

The financial grade for Assam Entrade Ltd is positive, reflecting some encouraging trends despite the challenges noted in quality and valuation. The stock has delivered a strong 1-year return of 59.34% as of 09 February 2026, with a notable 6-month gain of 36.02%. Year-to-date returns stand at 2.73%, and the stock has shown resilience with a 3-month gain of 2.11%. However, it is important to note that profits have fallen by -49.2% over the past year, highlighting a disconnect between stock price performance and earnings. This divergence suggests that market sentiment and technical factors may be driving the stock price more than fundamental earnings growth.

Technical Indicators

Technically, Assam Entrade Ltd is rated bullish. The stock’s recent price action supports this view, despite a 2.00% decline on the latest trading day and a 6.87% drop over the past week. The bullish technical grade indicates that momentum and chart patterns are currently favourable, which may attract short-term traders and investors looking for entry points. However, given the mixed fundamental backdrop, technical strength should be weighed carefully alongside financial metrics.

Stock Performance Summary

As of 09 February 2026, Assam Entrade Ltd’s stock performance presents a mixed picture. While the stock has delivered impressive returns over the past year and six months, recent shorter-term trends show some volatility. The 1-day decline of 2.00% and 1-month dip of 2.01% contrast with the longer-term gains, suggesting that investors should monitor price movements closely. The company’s flat results reported in September 2025 further underscore the need for cautious optimism.

What the Hold Rating Means for Investors

The 'Hold' rating for Assam Entrade Ltd suggests that investors should maintain their current positions without initiating new purchases or sales. This recommendation reflects the company’s balanced profile: while the stock has demonstrated strong price appreciation and positive technical momentum, fundamental concerns such as weak profitability and expensive valuation temper enthusiasm. Investors should consider this rating as a signal to monitor the stock closely for further developments in earnings growth and valuation adjustments before making significant portfolio changes.

Sector and Market Context

Operating within the Non Banking Financial Company (NBFC) sector, Assam Entrade Ltd faces sector-specific challenges and opportunities. The NBFC space has experienced volatility due to regulatory changes and credit market conditions, which can impact earnings and investor sentiment. Assam Entrade’s microcap status also means liquidity and market depth may be limited, contributing to price swings. Comparing the company’s performance to broader market indices and sector peers is essential for a comprehensive investment analysis.

Conclusion

In summary, Assam Entrade Ltd’s current 'Hold' rating by MarketsMOJO, updated on 07 February 2026, reflects a nuanced view of the company’s prospects as of 09 February 2026. The stock’s moderate Mojo Score of 50.0, combined with below average quality, very expensive valuation, positive financial trends, and bullish technicals, presents a mixed investment case. Investors are advised to weigh these factors carefully, recognising the potential for both upside and downside risks in the near term.

Key Metrics at a Glance (As of 09 February 2026)

• Mojo Score: 50.0 (Hold)
• Return on Equity (ROE): 2.88% (average), 2.3% (current)
• Price to Book Value: 1.9 (very expensive)
• 1-Year Stock Return: +59.34%
• Operating Profit Growth Rate: -7.53% (annualised)
• Profit Decline Over Past Year: -49.2%
• Technical Grade: Bullish

Investors should continue to monitor Assam Entrade Ltd’s earnings reports and market developments to reassess the stock’s outlook in the context of evolving fundamentals and market conditions.

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