Fino Payments Bank Upgraded to 'Hold' by MarketsMOJO, Showing Strong Long-Term Growth Potential

Fino Payments Bank, a smallcap company in the finance/NBFC industry, has recently been upgraded to a 'Hold' by MarketsMOJO. This decision is based on the company's strong long-term fundamental strength, with a 60.04% CAGR growth in operating profits. Additionally, the company has shown healthy long-term growth with an annual growth rate of 93.19% in net sales and 60.04% in operating profit.
Technically, the stock is currently in a mildly bullish range, with the technical trend improving from sideways on 25-Nov-24. The key technical factor, RSI, has also been bullish since 25 Nov 2024.

The majority shareholders of Fino Payments Bank are the promoters, indicating their confidence in the company's future prospects.

However, the company's results for September 2024 were flat, with PBDIT(Q) at its lowest at Rs -381.73 cr and PBT LESS OI(Q) also at its lowest at Rs -381.73 cr. The PAT(Q) has fallen by -7.8%. Additionally, with an ROE of 13.9, the company has an expensive valuation with a price to book value of 4.3. However, the stock is currently trading at a discount compared to its average historical valuations.

Despite these challenges, Fino Payments Bank has still managed to generate a return of 26.09% in the past year, with profits rising by 17.7%. The PEG ratio of the company is 1.8, indicating a potential for future growth.

In conclusion, while Fino Payments Bank may have faced some setbacks in the recent quarter, its long-term fundamental strength and potential for growth make it a 'Hold' for investors. With the majority shareholders being the promoters and the stock trading at a discount, it may be a good opportunity for investors to consider adding Fino Payments Bank to their portfolio.