Capital Trust Receives 'Hold' Upgrade from MarketsMOJO on Strong Quarterly Results and Bullish Technical 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 24th September 2024. This upgrade comes as the company has declared positive results for the last four consecutive quarters, with the highest PAT(Q) at Rs 2.02 crore, PBT LESS OI(Q) at Rs 2.56 crore, and EPS(Q) at Rs 1.25.
The stock is currently in a bullish range, with its technical trend improving from mildly bullish on 24th September 2024. Multiple factors, such as MACD, Bollinger Band, KST, and OBV, are contributing to the bullish trend of the stock.

The majority shareholders of Capital Trust are its promoters, indicating their confidence in the company's performance. However, the company has weak long-term fundamental strength, with an average ROE of 7.74%. Its net sales have also shown poor growth at an annual rate of -12.57%, and operating profit at -185.42%.

Despite its weak fundamentals, the stock is trading at a very expensive valuation with a price to book value of 1.9. However, it is currently trading at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 43.14%, while its profits have risen by 104.9%. The PEG ratio of the company stands at 0.3, indicating a potential for future growth.

Overall, with its recent positive results and bullish technical trend, Capital Trust's stock has been upgraded to 'Hold' by MarketsMOJO. However, investors should carefully consider the company's weak long-term fundamentals and expensive valuation before making any investment decisions.