Expleo Solutions Receives 'Hold' Rating from MarketsMOJO, Shows Strong Financial Position and Consistent Growth

Expleo Solutions, a smallcap IT software company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade is based on the company's low Debt to Equity ratio, which is currently at 0 times. This indicates a healthy financial position for the company.
In addition, Expleo Solutions has shown a consistent growth in its operating profit, with an annual rate of 21.94%. The stock is also in a Mildly Bullish range, with the technical trend improving from Sideways on 09-Oct-24. The key technical factor, KST, has been Bullish since 09 Oct 2024.

However, the company's ROE stands at 14.8, which indicates a fair valuation with a 3.3 Price to Book Value. The stock is currently trading at a premium compared to its average historical valuations. Over the past year, the stock has generated a return of -5.74%, while its profits have fallen by -26.8%.

In the latest quarter, Expleo Solutions reported flat results with a PAT of Rs 73.64 crore, which has seen a decline of -29.61%. The company's ROCE (HY) is also at its lowest at 19.18%.

Institutional investors have also decreased their stake in the company by -0.52% over the previous quarter and currently hold 1.89% of the company. This indicates a falling participation by institutional investors, who have better resources and capabilities to analyze the fundamentals of companies compared to retail investors.

Despite the overall positive indicators, Expleo Solutions has underperformed the market in the last 1 year. While the market (BSE 500) has generated returns of 37.10%, the stock has generated negative returns of -5.74%. This could be a cause for concern for investors, and it is recommended to closely monitor the company's performance in the coming quarters.