Fino Payments Bank Upgraded to 'Hold' by MarketsMOJO, Strong Long-Term Growth and Promoter Confidence

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 net sales growing at an annual rate of 93.19% and operating profit at 60.04%.
Technically, the stock is currently in a mildly bullish range, with the technical trend improving from sideways on 11-Nov-24. The stock's Bollinger Band and DOW technical factors are also mildly bullish.

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 crore and PBT LESS OI(Q) also at its lowest at Rs -381.73 crore. The company's PAT(Q) has fallen by -7.8%. Additionally, with an ROE of 13.9, the company has an expensive valuation with a 4.5 price to book value. 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 30.28% over the past year, with profits rising by 17.7%. The PEG ratio of the company is 1.8, indicating a fair valuation for the stock.

In conclusion, while Fino Payments Bank may face some challenges in the short term, its strong long-term fundamentals and the confidence of its promoters make it a hold for investors.