Inventure Growth & Securities Receives 'Hold' Rating After Strong Q1 Results

Inventure Growth & Securities, a microcap finance company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes after the company reported very positive results in the March 2024 quarter, with a growth in net profit of 163.16%. This marks the third consecutive quarter of positive results for the company.
The company's net sales for the half-year ending in March 2024 have also shown a significant growth of 51.32%, with the highest PBDIT (profit before depreciation, interest, and taxes) of Rs 11.16 crore. The operating profit to net sales ratio has also reached its highest at 51.17%.

Technically, the stock is currently in a mildly bullish range, with an improved trend from sideways on June 7, 2024. The Bollinger Band and KST technical factors are also showing a bullish trend.

In terms of valuation, the stock has an attractive price to book value of 1 and is trading at a premium compared to its historical average. Over the past year, the stock has generated a return of 36.27%, while its profits have risen by 52.2%. The PEG ratio, which measures the stock's price to earnings growth, is at a low 0.3.

The majority shareholders of Inventure Growth & Securities are non-institutional investors. However, the company's long-term fundamental strength is weak, with an average return on equity of 3.57%. The net sales growth has also been poor, with an annual rate of -0.26%.

Overall, while the recent results and technical factors may indicate a hold on the stock, investors should consider the company's weak long-term fundamentals before making any investment decisions.