Dhunseri Investments Receives Upgraded Stock Call from MarketsMOJO, Shows Strong Growth in Recent Quarter

Dhunseri Investments, a smallcap company in the finance/NBFC industry, has recently received an upgraded stock call from MarketsMOJO. The stock has been upgraded to 'Hold' on October 7, 2024.
The company has shown very positive results in the quarter ending June 2024, with a growth in net sales of 237.15%. This is reflected in the increase in PBT LESS OI(Q) at Rs 79.43 crore, which has grown at 124.51%, and the highest PBDIT(Q) at Rs 56.35 crore.

Technically, the stock is currently in a bullish range, with an improved trend from mildly bullish on October 7, 2024. The MACD and KST technical factors also indicate a bullish trend.

Dhunseri Investments has consistently outperformed the BSE 500 index in the last 3 annual periods, with a return of 171.72% in the last year alone.

However, the company's long-term fundamental strength is weak, with an average return on equity (ROE) of only 7.00%. The net sales have grown at a slow annual rate of 1.23%, and the operating profit is at -3.88%.

The stock is currently trading at a premium compared to its historical valuations, with a price to book value of 0.5 and an ROE of 1.9. In the past year, while the stock has generated a high return, its profits have decreased by -68.3%.

It is also worth noting that despite being a smallcap company, domestic mutual funds hold only 0.04% of the company. This could indicate that they are not comfortable with the current price or the business, as they have the capability to conduct in-depth research on companies.

In conclusion, while Dhunseri Investments has shown strong growth in the recent quarter, its long-term fundamentals and valuation may be a cause for concern. Investors may want to hold onto the stock for now and keep an eye on any future developments.