CNI Research receives upgraded stock call from MarketsMOJO, currently in bullish trend

CNI Research, a microcap IT software company, has recently received an upgraded stock call from MarketsMOJO. The stock has been upgraded to 'Hold' on October 14, 2024.
The decision to hold the stock is based on positive results in June 2024, with a 35% growth in net sales and a higher PAT of Rs 0.49 crore. Additionally, the stock is currently in a bullish range and the technical trend has improved from mildly bullish on October 14, 2024. Multiple factors such as MACD, Bollinger Band, KST, and OBV are also indicating a bullish trend for the stock.

The majority shareholders of CNI Research are non-institutional investors. The stock has shown a market-beating performance in the long term as well as the near term, with a return of 556.82% in the last year and outperforming BSE 500 in the last 3 years, 1 year, and 3 months.

However, the company's long-term fundamental strength is weak with an average ROE of 3.86%. The net sales have only grown at an annual rate of 21.21% and the operating profit at 4.06% over the last 5 years. Additionally, the company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 0.07.

The stock is currently trading at a very expensive valuation with a price to book value of 11.1. However, it is still at a discount compared to its average historical valuations. In the past year, while the stock has generated a return of 556.82%, its profits have only risen by 89%, resulting in a PEG ratio of 0.8.

Overall, CNI Research's recent stock upgrade to 'Hold' by MarketsMOJO is based on its positive results and bullish technical trend. However, investors should also consider the company's weak long-term fundamental strength and expensive valuation before making any investment decisions.