Bengal & Assam Company Upgraded to 'Hold' by MarketsMOJO, Strong Fundamentals and Bullish Trend Indicate Positive Outlook.

Bengal & Assam Company, a midcap finance company, has recently been upgraded to a 'Hold' by MarketsMOJO. This decision is based on strong long-term fundamental strength, technical bullish trend, and consistent returns over the last three years.
The company has shown an average Return on Equity (ROE) of 15.28%, indicating a strong financial performance. The stock is also currently in a bullish range, with multiple factors such as MACD, Bollinger Band, and KST pointing towards a positive trend.

In the last year, Bengal & Assam Company has outperformed BSE 500 and generated a return of 81.15%. However, the company recently declared negative results in March 2024 after seven consecutive positive quarters. This has led to a decrease in CASH AND CASH EQUIVALENTS(HY) to Rs 32.60 cr, NET SALES(Q) to Rs 522.94 cr, and PBDIT(Q) to Rs 110.21 cr.

Despite having a ROE of 14.4, the company's valuation is considered expensive with a 1.1 Price to Book Value. However, the stock is currently trading at a fair value compared to its historical valuations. Additionally, while the stock has shown a significant return in the past year, its profits have only risen by 31.9%, resulting in a low PEG ratio of 0.2.

It is also worth noting that despite being a midcap company, domestic mutual funds hold only 0.01% of Bengal & Assam Company. This could indicate 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, Bengal & Assam Company's recent upgrade to a 'Hold' by MarketsMOJO is a positive sign for investors. However, the company's negative results and expensive valuation should also be considered before making any investment decisions.