Indo-City Infotech Receives 'Hold' Rating from MarketsMOJO, Shows Bullish Trend and Attractive Valuation

Indo-City Infotech, a microcap IT software company, has recently received a 'Hold' rating from MarketsMOJO on September 25, 2024. This upgrade is based on various technical indicators that show a bullish trend for the stock.

The stock has shown a significant improvement in its technical trend, moving from mildly bullish to a more bullish range. This is supported by factors such as MACD, Bollinger Band, KST, DOW, and OBV, all of which are currently in favor of the stock.

In terms of valuation, the stock is currently trading at a discount compared to its historical average. With a price to book value of 1.4 and a return on equity of 6.9, the stock is considered to be attractively priced.

Over the past year, the stock has generated a return of 91.94%, while its profits have increased by 80%. This has resulted in a PEG ratio of 0, indicating that the stock is undervalued.

However, the company's long-term fundamental strength is weak, as it has reported operating losses. Its ability to service its debt is also a concern, with a poor EBIT to interest ratio of -0.62. This has also led to a negative return on capital employed (ROCE).

In the latest quarter, the company's results have been flat, with a decline of 47.96% in net sales and a negative PBDIT and PBT less OI. These factors suggest that the company needs to improve its financial performance in the coming quarters.

Despite these challenges, Indo-City Infotech has consistently outperformed the BSE 500 index in the last three years. This shows that the company has the potential to turn things around and improve its financial standing in the long run.

In conclusion, while the stock has shown a bullish trend and has attractive valuation, investors should also consider the company's weak long-term fundamentals before making any investment decisions.