CNI Research Receives Upgraded Stock Call from MarketsMOJO, Showing Positive Growth and Bullish Indicators

CNI Research, a microcap IT software company, has recently received an upgraded stock call from MarketsMOJO. The stock has been upgraded to a 'Hold' rating on September 10, 2024.
The upgrade is based on the company's positive results in June 2024, with a significant growth in net sales of 101.79% and higher profits at Rs 0.49 crore. The stock is also currently in a bullish range, with technical indicators such as MACD, Bollinger Band, and KST showing positive trends.

Majority shareholders of CNI Research are non-institutional investors, and the stock has shown market-beating performance in both the long term and near term. In the last year, the stock has generated a return of 467.15%, outperforming the BSE 500 index in the last 3 years, 1 year, and 3 months.

However, the company's long-term fundamental strength is weak, with an average return on equity (ROE) of 3.86%. Net sales and operating profit have only grown at an annual rate of 21.21% and 10.53%, respectively, over the last 5 years. Additionally, the company's ability to service its debt is poor, with a low EBIT to interest ratio of 0.07.

The stock is currently trading at a very expensive valuation, with a price to book value of 9. However, it is still at a discount compared to its average historical valuations. While the stock has generated a high return in the past year, its profits have only risen by 89%, resulting in a PEG ratio of 0.7.

Overall, CNI Research's stock has been upgraded to a 'Hold' rating, based on its recent positive results and bullish technical indicators. However, investors should also consider the company's weak long-term fundamentals and expensive valuation before making any investment decisions.