Finkurve Financial Services: A Promising Stock with Mixed Fundamentals and Technicals

Finkurve Financial Services, a smallcap finance company, has recently caught the attention of investors as its stock call has been upgraded to 'Hold' by MarketsMOJO on October 3, 2024.
The company has been consistently delivering positive results for the past four quarters, with a growth of 123.08% in its PAT (HY) at Rs 9.28 crore. Its NET SALES (Q) have also reached a high of Rs 28.43 crore, while PBDIT (Q) stands at Rs 8.39 crore, the highest in its history.

Technically, the stock is currently in a bullish range and has shown improvement from being mildly bullish on October 3, 2024. Multiple factors such as MACD, Bollinger Band, and KST are also indicating a bullish trend for the stock.

However, the company's long-term fundamental strength is weak with an average ROE of 5.34%. Its current ROE of 9.8 also suggests a very expensive valuation with a price to book value of 6.7, which is higher than its historical average. Despite generating a return of 33.23% in the past year, the company's profits have only risen by 39.2%, resulting in a PEG ratio of 1.7.

It is also worth noting that despite being a smallcap company, domestic mutual funds hold only 0% of the company's shares. This could indicate that either they are not comfortable with the current price or they have not conducted in-depth research on the company.

In conclusion, while Finkurve Financial Services has shown promising growth in its financials and technical indicators, its expensive valuation and lack of interest from domestic mutual funds may be a cause for concern for potential investors. It is advisable to closely monitor the company's performance and conduct thorough research before making any investment decisions.