Centrum Capital's Stock Upgrade to 'Hold' Attracts Investor Attention After Impressive Q1 Results

Centrum Capital, a smallcap finance company, has recently caught the attention of investors as its stock call has been upgraded to 'Hold' by MarketsMOJO on July 3, 2024. This upgrade comes after the company reported positive results in the quarter ending March 2024. The company's profit after tax has grown by an impressive 104.8%, while its net sales have increased by 34.6%. Additionally, its PBDIT (Profit Before Depreciation, Interest, and Taxes) has reached a record high of Rs 340.50 crore.
From a technical standpoint, the stock is currently in a bullish range and has shown improvement since July 3, 2024. Multiple factors, such as MACD, Bollinger Band, KST, and OBV, indicate a bullish trend for the stock.

In terms of performance, Centrum Capital has outperformed the market (BSE 500) with a return of 90.28% in the last year. However, its long-term fundamental strength is weak, with an average Return on Equity (ROE) of 9.69%. The company also has a high valuation, with a price to book value of 3.8, which is significantly higher than its historical average.

It is worth noting that 32.29% of the promoter shares of Centrum Capital are pledged, which could put additional downward pressure on the stock prices in falling markets. Overall, while the stock has shown impressive returns in the past year, its fundamental strength and valuation may be a cause for concern for potential investors.