Joindre Capital Services Receives 'Hold' Rating

Joindre Capital Services, a microcap finance company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes after the company reported positive results in the third quarter of 2023. Its net sales for the quarter were the highest at Rs 10.26 crore, while its PBDIT was also at its highest at Rs 2.65 crore. The operating profit to net sales ratio was also the highest at 25.83%.
The stock is currently in a bullish range and has shown a significant improvement in its technical trend since the upgrade on 06-Dec-23. It has generated a return of 16.59% since then. Multiple factors such as MACD, Bollinger Band, KST, DOW, and OBV indicate a bullish trend for the stock.

The majority shareholders of Joindre Capital Services are its promoters, which is a positive sign for investors. The stock has consistently outperformed BSE 500 in the last 3 annual periods and has generated a return of 72.68% in the last year.

However, the company's long-term fundamental strength is weak with an average return on equity (ROE) of 4.87%. Its net sales and operating profit have shown a slow growth rate of 12.63% and 6.04%, respectively. The stock also has an expensive valuation with a price to book value of 1.1 and an ROE of 5.5.

Despite its recent positive performance, the stock is currently trading at a premium compared to its historical valuations. In the past year, while the stock has generated a high return, its profits have declined by -7.3%. Investors should carefully consider these factors before making any investment decisions regarding Joindre Capital Services.