Comfort Intech Receives 'Hold' Rating from MarketsMOJO After Record Breaking Performance

Comfort Intech, a microcap finance company, has recently received a 'Hold' rating from MarketsMOJO on February 7, 2024. This upgrade comes after the company reported positive results in December 2023, with its net sales reaching a record high of Rs 45.99 crore and its profit after tax also hitting a new high of Rs 6.75 crore.
The stock is currently in a bullish range and its technical trend has improved from mildly bullish to bullish on February 7, 2024. This is supported by multiple factors such as MACD, Bollinger Band, and KST. The majority shareholders of Comfort Intech are its promoters, indicating their confidence in the company's performance.

In terms of returns, Comfort Intech has consistently outperformed the BSE 500 index over the last 3 years, with a remarkable 205.07% return in the last 1 year alone. However, its long-term fundamental strength is weak with an average return on equity (ROE) of 4.39%. Additionally, with a ROE of 6.7, the stock is currently trading at a very expensive valuation with a price to book value of 2.2. This is higher than its average historical valuations.

Despite its high valuation, the stock has shown strong growth in profits, with a 63.8% increase in the past year. However, its PEG ratio of 0.4 suggests that the stock may be overvalued. Investors should carefully consider these factors before making any investment decisions regarding Comfort Intech.