Jupiter Infomedia Receives 'Hold' Rating After Consistent Positive Results in Past 6 Quarters

Jupiter Infomedia, a microcap IT software company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes after the company has consistently shown positive results for the past 6 quarters. In fact, its profit after tax has grown by an impressive 109.52% and its return on capital employed is at a high of 46.33%.
Technically, the stock is in a bullish range and has shown improvement since February 6, 2024. The MACD and KST technical factors also indicate a bullish trend. The majority shareholders of the company are the promoters, which adds to the stability and confidence in the company's performance.

Jupiter Infomedia has outperformed the market with a return of 148.55% in the last year, compared to the BSE 500 index's return of 34.02%. However, the company's long-term fundamental strength is weak with an average return on equity of 7.24%. Its operating profit has only grown at an annual rate of 13.70% over the last 5 years, indicating slow growth.

The company's ability to service its debt is also a concern, with a poor EBIT to interest ratio of -0.04. Additionally, with a ROE of 26.7, the stock is currently overvalued with a price to book value of 2.2. However, it is currently trading at a discount compared to its historical valuations.

Despite its strong performance in the past year, Jupiter Infomedia's profits have only risen by 222.7%, resulting in a PEG ratio of 0. This suggests that the stock may not be a good investment for long-term growth. Overall, while the company has shown positive results in the short term, its long-term growth potential may be limited.