Enbee Trade & Finance Receives 'Hold' Rating After Positive Results and Technical Trend Improvement

Enbee Trade & Finance, a microcap finance company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes after the company reported very positive results in September 2024, with a growth in operating profit of 130.97%. This is the second consecutive quarter of positive results for the company.
The company's net sales for the half year have also seen a significant growth of 82.46%, with the highest PBDIT and PBT LESS OI in the quarter at Rs 3.58 crore and Rs 2.35 crore respectively. This has led to a technical trend improvement from sideways to mildly bullish on November 27, 2024.

Enbee Trade & Finance also has attractive valuations, with a price to book value of 0.7 and a return on equity of 7.4%. The stock is currently trading at a fair value compared to its historical valuations. In the past year, the stock has generated a return of 32.24%, while its profits have risen by 3.2%. The PEG ratio of the company is also at a low 0.1.

However, the company's majority shareholders are non-institutional, and it has weak long-term fundamental strength with an average return on equity of 7.02%. The operating profit has also seen a negative annual growth rate of -2.75%.

Overall, Enbee Trade & Finance shows potential for growth with its recent positive results and technical trend improvement. However, investors should also consider the company's weak long-term fundamentals and majority non-institutional shareholders before making any investment decisions.