Industrial & Prudential Investment Co. Receives 'Hold' Rating from MarketsMOJO Based on Technical Indicators

Industrial & Prudential Investment Company, a smallcap finance/NBFC company, has recently received a 'Hold' rating from MarketsMOJO on 2024-08-26. This upgrade is based on various technical indicators that suggest a bullish trend for the stock.

The stock has shown a significant improvement in its technical trend, moving from Mildly Bullish to Bullish on 20-Aug-24. Since then, it has generated a return of 4.06%. Factors such as MACD, Bollinger Band, KST, and DOW all point towards a bullish outlook for the stock.

In terms of valuation, the stock is currently trading at a fair value compared to its historical average. With a ROE of 6.4 and a price to book value of 1.5, the stock is considered to be attractively priced.

Over the past year, the stock has generated a return of 146.59%, outperforming the BSE 500 index. However, its profits have only seen a modest increase of 15.1%, resulting in a PEG ratio of 1.5.

While the stock has shown consistent returns over the last 3 years, its long-term fundamental strength is weak. The average ROE stands at 6.36%, and the company has seen a decline in net sales and operating profit at -2.15% and 5.41% respectively.

The company's financial results for Jun 24 have been flat, with its cash and cash equivalents at the lowest level of Rs 1.41 crore and PBT less OI at Rs 10.59 crore.

In conclusion, while the stock is currently in a bullish range and has shown strong returns in the past year, its long-term fundamentals and financial results raise some concerns. Investors are advised to hold the stock for now and keep a close eye on its future performance.