Credent Global Finance Receives 'Hold' Rating from MarketsMOJO, Strong Fundamentals and Technical Trend, But Concerns Remain

Credent Global Finance, a microcap finance company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade is based on the company's strong long-term fundamental strength, with an average Return on Equity (ROE) of 15.15%. The company has also shown healthy long-term growth, with a 169.70% annual growth in Net Sales and a 57.26% growth in Operating profit.
Technically, the stock is currently in a bullish range, with the technical trend improving from Mildly Bullish on 11-Oct-24. Multiple factors, such as MACD, Bollinger Band, KST, and OBV, are also indicating a bullish trend for the stock.

However, the company did report negative results in Jun 24, with a -48.17% growth in Net Sales and a -2971.6% fall in PAT(Q). The PBDIT(Q) was also at its lowest at Rs -9.48 cr. Additionally, with a ROE of 1.8, the stock is currently trading at a very expensive valuation, with a 2.1 Price to Book Value. This is a concern for investors, as the stock is currently trading at a discount compared to its average historical valuations.

In the past year, while the stock has generated a return of 5.57%, its profits have fallen by -80%. This underperformance in the market has also been reflected in the stock's returns, which are much lower than the market (BSE 500) returns of 34.90%.

It is important to note that the majority shareholders of Credent Global Finance are non-institutional investors. This may indicate a lack of confidence from institutional investors in the company's future potential. However, it is also worth mentioning that the company has not mentioned any future potential or investor interest in its recent reports.

Overall, while Credent Global Finance has shown strong long-term fundamental strength and technical bullishness, the negative results and expensive valuation may be a cause for concern for investors. The stock has also underperformed in the market in the past year. Therefore, MarketsMOJO's 'Hold' rating seems appropriate for now.