IRIS Business Services Receives 'Hold' Rating from MarketsMOJO, Shows Impressive Results in Last Quarter

IRIS Business Services, a microcap company in the BPO/ITeS industry, has recently received a 'Hold' rating from MarketsMOJO on August 7, 2024. This downgrade is due to the company's low Debt to Equity ratio, which is currently at 0 times on average.
However, the company has shown impressive results in the last quarter, with a growth in Net Profit of 198.73%. In fact, IRIS Business Services has declared positive results for the past 7 consecutive quarters, with a ROCE (HY) of 23.95% and the highest NET SALES (Q) at Rs 30.35 crore. The company also has a high DEBTORS TURNOVER RATIO (HY) at 4.58 times.

Technically, the stock is in a Mildly Bullish range, with both MACD and KST technical factors showing a Bullish trend. In the long term, the stock has outperformed BSE 500 and has generated a return of 171.67% in the last year.

However, the company's long term growth has been poor, with Net Sales growing at an annual rate of 29.14% over the last 5 years. Additionally, with a ROE of 21.2, the stock is currently trading at a Very Expensive valuation with a 12.6 Price to Book Value. This is also reflected in the fact that the stock is trading at a premium compared to its average historical valuations.

Despite its impressive performance, domestic mutual funds hold only 0% of the company, which may indicate that they are not comfortable with the current price or the business. As a microcap company, IRIS Business Services may have potential for growth, but it is important for investors to carefully consider the company's financials and valuation before making any investment decisions.