JMJ Fintech's Stock Upgraded to 'Buy' as Company Reports Impressive Financial Results

JMJ Fintech, a microcap company in the finance/NBFC industry, has recently caught the attention of investors as its stock call has been upgraded to 'Buy' by MarketsMOJO on September 5th, 2024.
The company has been making waves in the market with its outstanding financial results in June 2024, showing a growth in net profit of 857.89%. This positive trend has continued for the last three consecutive quarters, with the company reporting higher net sales of Rs 6.76 crore and PBDIT of Rs 2.82 crore in the latest quarter. Additionally, its PBT less OI has also reached a new high at Rs 2.44 crore.

Technically, the stock is in a bullish range and has shown improvement since September 4th, 2024, generating a return of -4.97%. Multiple factors such as MACD, KST, and OBV are also indicating a bullish trend for the stock.

Moreover, JMJ Fintech has a very attractive valuation with a price to book value of 2.3 and a return on equity (ROE) of 24.2%. It is currently trading at a discount compared to its historical valuations and has shown a return of 20.89% in the past year, with a significant increase in profits by 236.6%. The company's PEG ratio is also at a favorable 0, indicating its potential for growth.

However, there are some risks associated with investing in JMJ Fintech. The company has a weak long-term fundamental strength with an average ROE of 1.35% and a poor long-term growth rate of 21.75% in net sales. It has also underperformed the market in the past year, with a return of 20.89% compared to the market's return of 37.08%.

It is worth noting that the majority of the company's shareholders are non-institutional, which may pose a risk for investors. Overall, JMJ Fintech shows promising potential for growth and has caught the attention of investors with its recent positive financial results.