Geojit Financial Services Receives 'Buy' Rating and Shows Strong Growth Potential

Geojit Financial Services, a smallcap company in the finance/NBFC industry, has recently received a 'Buy' rating from MarketsMOJO on April 2, 2024. This upgrade is 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 the last quarter, with its highest net sales, PBDIT, and PAT at Rs 152.22 cr, Rs 58.20 cr, and Rs 36.89 cr respectively. This has contributed to the stock's bullish trend, with technical indicators such as MACD, Bollinger Band, and KST all pointing towards a positive outlook.

Moreover, Geojit Financial Services is currently trading at an attractive valuation with a price to book value of 2.5, which is lower than its historical average. Despite generating a return of 91.10% in the past year, the stock is still trading at a discount compared to its peers. This is further supported by the company's PEG ratio of 0.8, indicating that it is undervalued.

Another positive factor for the company is the increasing participation of institutional investors, who have increased their stake by 0.91% in the previous quarter. This shows their confidence in the company's fundamentals and their ability to analyze it better than retail investors.

Geojit Financial Services has also outperformed the market (BSE 500) with a return of 91.10% in the last year, compared to the market's return of 40.39%.

However, there are some risks to consider, such as the company's poor long-term growth rate, with net sales growing at an annual rate of 10.48% and operating profit at 1.84%. This could potentially affect the company's future performance.

Overall, with its strong fundamentals, attractive valuation, and market-beating performance, Geojit Financial Services is a promising stock to consider for investors.