Capital Trust Receives 'Hold' Rating from MarketsMOJO, Shows Strong Financial Performance and Bullish Trend

Capital Trust, a microcap finance company, has recently received an upgraded stock call from MarketsMOJO. The company's stock has been upgraded to 'Hold' on 2024-07-08. This upgrade comes as the company has declared positive results for the last four consecutive quarters, with its PAT(Q) reaching a high of Rs 2.02 crore, PBT LESS OI(Q) at Rs 2.56 crore, and EPS(Q) at Rs 1.25.
In addition to its strong financial performance, the stock is also showing a bullish trend in the market. The technical trend has improved from Mildly Bullish on 08-Jul-24, with multiple factors such as MACD, Bollinger Band, and KST indicating a bullish outlook.

The majority shareholders of Capital Trust are its promoters, which adds to the company's stability and potential for growth. The stock has also outperformed the market (BSE 500) with a return of 57.51% in the last year, compared to the market's return of 37.98%.

However, the company's long-term fundamental strength is weak, with an average ROE of 7.74%. Its net sales have shown a negative growth rate of -15.53%, and operating profit at -185.42%. Additionally, with a ROE of 5.3, the stock is currently trading at a very expensive valuation with a 1.6 price to book value.

Despite these concerns, the stock is still trading at a discount compared to its average historical valuations. Moreover, while the stock has generated a high return of 57.51% in the past year, its profits have also increased by 104.4%, resulting in a low PEG ratio of 0.3.

In conclusion, while Capital Trust's stock has been upgraded to 'Hold' by MarketsMOJO, investors should carefully consider the company's weak long-term fundamental strength and expensive valuation before making any investment decisions.