Gowra Leasing & Finance Receives 'Hold' Rating After Consistent Positive Results

Gowra Leasing & Finance, a microcap finance company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes after the company has consistently shown positive results for the past four quarters. In the last nine months, the company's Profit After Tax (PAT) has increased to Rs 1.90 crore, while its Profit Before Depreciation, Interest, and Taxes (PBDIT) for the quarter has reached its highest at Rs 0.43 crore. Additionally, the company's Profit Before Tax (PBT) less Other Income (OI) for the quarter has also reached its highest at Rs 0.42 crore.
The stock is currently in a bullish range and its technical trend has improved from mildly bullish to bullish on 07-Mar-24. This can be attributed to multiple factors such as MACD, Bollinger Band, KST, and OBV. With a Return on Equity (ROE) of 13.9%, the stock is fairly valued with a Price to Book Value (P/B) of 0.9. It is also trading at a fair value compared to its average historical valuations.

In the past year, the stock has outperformed the market (BSE 500) with a return of 119.28%, while its profits have increased by 137%. The company's PEG ratio, which measures the stock's valuation relative to its growth, is at 0, indicating that it is undervalued.

The majority shareholders of Gowra Leasing & Finance are its promoters, which is a positive sign for investors. However, the company's long-term fundamental strength is weak with an average ROE of 5.39%. Its operating profit has only grown at an annual rate of 5.12%, indicating poor long-term growth.

Overall, while the stock has shown strong performance in the past year, its long-term growth potential may be limited. Investors should carefully consider their options before making any investment decisions.