Jhaveri Credits & Capital Receives 'Hold' Rating from MarketsMOJO, Reports Record High PBDIT(Q) in December 2023

Jhaveri Credits & Capital, a microcap finance company, has recently received a 'Hold' rating from MarketsMOJO on March 27, 2024. This upgrade comes after the company reported positive results in December 2023, with its PBDIT(Q) reaching a record high of Rs 1.37 crore, PBT LESS OI(Q) at Rs 1.36 crore, and PAT(Q) at Rs 1.06 crore.
The stock is currently in a bullish range, with its technical trend improving from mildly bullish on March 27, 2024. Multiple factors such as MACD, Bollinger Band, KST, DOW, and OBV are also indicating a bullish trend for the stock.

Jhaveri Credits & Capital has consistently delivered strong returns over the last three years, outperforming BSE 500 in each of the last three annual periods. In the last one year alone, the stock has generated a remarkable return of 549.14%.

However, the company's long-term fundamental strength is weak, with an average Return on Equity (ROE) of 2.91%. Its current ROE of 27.2 indicates a very expensive valuation, with a price to book value of 34.2. This is significantly higher than its average historical valuations.

Moreover, the company's promoters have decreased their stake in the company by -20.95% over the previous quarter and currently hold only 53.3% of the company. This decrease in promoter confidence may suggest a lack of faith in the future prospects of the business.

In conclusion, while Jhaveri Credits & Capital has shown strong performance in the short term, its long-term fundamentals and high valuation may be a cause for concern. Investors are advised to hold onto their stocks for now and keep a close eye on any future developments.