ISL Consulting Receives 'Hold' Rating from MarketsMOJO, Despite Concerns Over Long-Term Fundamentals

ISL Consulting, a microcap company in the finance/NBFC industry, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes after the company declared positive results for the last 5 consecutive quarters, with significant growth in net sales, PBT less OI, and PAT. Additionally, the stock is currently in a bullish range and has shown improvement in technical trends.
However, despite these positive developments, there are some concerns regarding the company's long-term fundamentals. The average ROE is only 6.82%, indicating weak long-term fundamental strength. Furthermore, the company has shown poor growth in net sales and operating profit over the years.

In terms of valuation, ISL Consulting has a high ROE of 21.2, making it very expensive with a price to book value of 5.3. However, the stock is currently trading at a discount compared to its historical valuations. In the past year, the stock has generated a return of 14.32%, while its profits have risen by 194.3%. This gives the company a low PEG ratio of 0.1, indicating that it may be undervalued.

It is also worth noting that ISL Consulting has underperformed the market in the last year, with a return of 14.32% compared to the market's return of 31.95%. This could be a cause for concern for potential investors.

Overall, while ISL Consulting has shown positive growth in recent quarters and is currently in a bullish range, there are some concerns regarding its long-term fundamentals and valuation. Investors may want to carefully consider these factors before making any investment decisions.