Dharani Finance's Stock Upgraded to 'Hold' After Positive Quarter Results and Bullish Technical Trend

Dharani Finance, a microcap finance company, has recently received an upgraded stock call from MarketsMOJO. The company's stock has been upgraded to 'Hold' on August 13, 2024.
The decision to upgrade the stock to 'Hold' is based on the positive results shown by the company in the quarter ending June 2024. Dharani Finance reported its highest PBDIT (Profit Before Depreciation, Interest, and Taxes) of Rs. 0.33 crore, PBT (Profit Before Tax) less OI (Other Income) of Rs. 0.31 crore, and PAT (Profit After Tax) of Rs. 0.31 crore in this quarter.

In addition to this, the stock is currently in a bullish range and the technical trend has improved from mildly bullish to bullish on August 13, 2024. This can be attributed to multiple factors such as MACD (Moving Average Convergence Divergence), Bollinger Band, and KST (Know Sure Thing).

Dharani Finance has majority shareholders who are non-institutional investors. However, the company has weak long-term fundamental strength with an average ROE (Return on Equity) of 0.76%. Its net sales have also shown poor growth at 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 1.6. However, it is still trading at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 42.93%, while its profits have risen by 26%. The PEG (Price/Earnings to Growth) ratio of the company is 0, indicating a stable growth potential.

Overall, Dharani Finance's stock has been upgraded to 'Hold' based on its recent positive results and bullish technical trend. However, the company's weak long-term fundamental strength and expensive valuation should be taken into consideration by investors before making any investment decisions.