Inventure Growth & Securities Receives 'Hold' Rating After Strong Quarter 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 quarter ending March 2024, with a growth in net profit of 163.16%. This is the third consecutive quarter in which the company has declared positive results.
The company's net sales for the half year ending March 2024 have also shown a significant growth of 51.32%, reaching Rs 37.83 crore. In addition, the company's PBDIT (profit before depreciation, interest, and taxes) for the quarter is at its highest at Rs 11.16 crore, with the operating profit to net sales ratio also at its highest at 51.17%.

Technically, the stock is currently in a mildly bullish range, with an improved trend from sideways on July 8, 2024. The MACD and KST technical factors are also showing a bullish trend.

In terms of valuation, the stock has a fair valuation with a price to book value of 1.3 and a return on equity (ROE) of 6.4. However, it is currently trading at a premium compared to its average historical valuations. Over the past year, the stock has generated a return of 42.14%, while its profits have risen by 52.2%. The PEG ratio of the company is also at a favorable 0.8.

It is worth noting that the majority of the company's shareholders are non-institutional investors. In terms of long-term fundamental strength, the company has an average ROE of 3.57% and a poor long-term growth rate, with net sales growing at an annual rate of -0.26%.

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