COSYN receives upgraded stock call from MarketsMOJO, currently in bullish trend

COSYN, a microcap IT software company, has recently received an upgraded stock call from MarketsMOJO. The stock has been upgraded to 'Hold' on May 21, 2024.
The upgrade is based on the company's positive results in March 2024, with PBDIT(Q) at its highest at Rs 1.16 crore, PBT LESS OI(Q) at Rs 0.92 crore, and PAT(Q) at Rs 0.82 crore. Additionally, the stock is currently in a bullish range and has shown a 12.39% return since May 13, 2024.

Multiple technical factors, such as MACD, Bollinger Band, and KST, also indicate a bullish trend for the stock. The majority shareholders of COSYN are its promoters, and the company has shown market-beating performance in both the long term and near term, with a 72.82% return 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 a -34.27% CAGR growth in operating profits over the last 5 years. Its ability to service its debt is also poor, with a low EBIT to Interest (avg) ratio of 0.10. The company's Return on Equity (avg) is at 1.83%, indicating low profitability per unit of shareholders' funds.

With a ROE of 0.1, the stock is currently very expensive, with a price to book value of 1.2. However, it is trading at a discount compared to its average historical valuations. In the past year, while the stock has shown a return of 72.82%, its profits have decreased by -22%.

Overall, the upgraded stock call for COSYN is 'Hold', with a mix of positive and negative factors affecting its performance. Investors should carefully consider these factors before making any investment decisions.