Geojit Financial Services Downgraded to 'Hold' by MarketsMOJO, Strong Fundamentals and Attractive Valuation Remain

Geojit Financial Services, a smallcap company in the finance/NBFC industry, has recently been downgraded to a 'Hold' by MarketsMOJO on February 12, 2024. This decision was based on the company's strong long-term fundamental strength, with an average Return on Equity (ROE) of 14.35%.
In addition, the company has shown positive results in December 2023, with its highest net sales, PBDIT, and PAT in the quarter. The stock is also technically in a mildly bullish range, with its MACD and KST technical factors also being bullish.

Geojit Financial Services also has an attractive valuation, with a price to book value of 2.4 and trading at a discount compared to its average historical valuations. Over the past year, the stock has generated a return of 67.49%, while its profits have risen by 18.8%. The PEG ratio of the company is also at a favorable 0.8.

Furthermore, there has been an increasing participation by institutional investors, with a 0.91% increase in their stake over the previous quarter. These investors have better capability and resources to analyze the fundamentals of companies compared to most retail investors.

Despite its market-beating performance, Geojit Financial Services has shown poor long-term growth, with net sales growing at an annual rate of 10.48% and operating profit at 1.84%. This may have contributed to the downgrade to a 'Hold' by MarketsMOJO.

Overall, Geojit Financial Services has shown strong fundamental strength and attractive valuation, but its long-term growth may be a concern. Investors are advised to hold onto their stocks for now and keep an eye on the company's future performance.