Econo Trade India Receives 'Hold' Rating from MarketsMOJO After Positive Q3 Results

Econo Trade India, a microcap company in the finance/NBFC industry, has recently received a 'Hold' rating from MarketsMOJO on July 3rd, 2024. This upgrade comes after the company reported positive results in the third quarter of the fiscal year 2024, with higher net sales of Rs 5.81 crore and a PBDIT of Rs 2.33 crore, the highest in the quarter. The PBT less OI also saw a significant increase at Rs 1.29 crore.
Technically, the stock is currently in a mildly bullish range and has shown improvement from a mildly bearish trend on July 3rd, 2024. The MACD and KST technical factors also indicate a bullish trend for the stock.

One of the major factors contributing to the 'Hold' rating is the company's attractive valuation with a price to book value of 0.4 and a return on equity (ROE) of 6. This is considered to be very attractive compared to its historical valuations. Additionally, the company's profits have risen by 34.8% in the past year, while the stock has generated a return of 2.92%. The PEG ratio of the company is also at a low 0.2.

However, Econo Trade India does have weak long-term fundamental strength with an average ROE of 3.03% and poor long-term growth as net sales have only grown at an annual rate of 12.34%. The stock has also underperformed the market in the last year, with a return of 2.92% compared to the market's return of 37.61%.

It is worth noting that the majority of the company's shareholders are non-institutional investors. This may indicate a lack of confidence from larger, more experienced investors.

Overall, while Econo Trade India has shown positive results in the recent quarter and has a bullish technical trend, its weak long-term fundamentals and underperformance in the market may be a cause for concern. Investors may want to hold off on investing in this microcap company until there is more stability and growth in its financials.