Dharani Finance Receives Upgraded Stock Call from MarketsMOJO, Showing Positive Results in June Quarter

Dharani Finance, a microcap finance company, has recently received an upgraded stock call from MarketsMOJO. The stock has been upgraded to 'Hold' on November 5th, 2024.
The decision to upgrade the stock is based on positive results in the June 2024 quarter. The company's profit after tax (HY) has increased to Rs 0.03 crore, while its PBDIT (Q) has reached its highest at Rs 0.33 crore. Additionally, the PBT LESS OI (Q) has also seen a significant increase at Rs 0.31 crore.

Technically, the stock is currently in a bullish range and the technical trend has improved from mildly bullish on November 5th, 2024. Multiple factors such as RSI, MACD, Bollinger Band, and KST are also indicating a bullish trend for the stock.

The majority shareholders of Dharani Finance are non-institutional investors. The stock has also shown a market-beating performance with a return of 85.19% in the last year, which is significantly higher than the market (BSE 500) returns of 32.67%.

However, the company's long-term fundamental strength is weak with an average return on equity (ROE) of 0.76%. Its net sales have also shown poor growth with an annual rate of -0.96%. The stock is currently trading at an expensive valuation with a price to book value of 0.5 and an ROE of 1.5. However, it is still trading at a discount compared to its average historical valuations.

Despite the stock's impressive return of 85.19% in the last year, its profits have only increased by 26%. This results in a PEG ratio of 0, indicating that the stock may be undervalued. Overall, Dharani Finance's upgraded stock call to 'Hold' by MarketsMOJO is a positive sign for investors, but it is important to consider the company's weak long-term fundamental strength before making any investment decisions.