Finkurve Financial Services: Stock Upgraded to 'Hold' Amidst Strong Performance, But Long-Term Concerns Remain

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 15, 2024.
The company has been consistently delivering positive results for the past four quarters, with a growth of 123.08% in PAT (HY) and 26.3% in NET SALES (Q). Its PBDIT (Q) has also reached its highest at Rs 8.39 cr. This has led to a bullish trend in the stock, with technical indicators such as MACD, Bollinger Band, and KST all showing positive signs.

In addition, Finkurve Financial Services has outperformed BSE 500 in each of the last three annual periods, with a return of 43.20% in the last year alone. However, the company's long-term fundamental strength is weak, with an average ROE of 5.34%. Its current valuation is also considered expensive, with a price to book value of 6.8.

It is worth noting that despite its small size, domestic mutual funds hold only 0% of the company. This could indicate that they are either not comfortable with the current price or have not conducted thorough research on the company.

Overall, Finkurve Financial Services has shown promising growth in the past year, but its long-term fundamentals and valuation may be a cause for concern. Investors should carefully consider these factors before making any investment decisions.