Jupiter Infomedia Receives 'Hold' Rating from MarketsMOJO, Shows Positive Results in Last Six Quarters

Jupiter Infomedia, a microcap IT software company, has recently received a 'Hold' rating from MarketsMOJO on February 19, 2024. This upgrade comes as the company has shown positive results for the last six consecutive quarters, with a growth of 109.52% in its PAT (HY) at Rs 2.64 crore and a highest ROCE (HY) of 46.33%.
The stock is currently in a bullish range, with technical trends improving from mildly bullish on February 19, 2024. The MACD and KST technical factors also indicate a bullish trend. Majority shareholders of the company are promoters, which adds to the confidence in its performance.

In the long term, Jupiter Infomedia has shown market-beating performance, with a return of 133.01% in the last year and outperforming BSE 500 in the last 3 years, 1 year, and 3 months. However, the company's long-term fundamental strength is weak, with an average ROE of 7.24% and poor growth in operating profit over the last 5 years.

The company's ability to service its debt is also weak, with a poor EBIT to Interest (avg) ratio of -0.04. With a ROE of 26.7, the stock is currently trading at a very expensive valuation with a 1.9 price to book value. However, it is currently trading at a discount compared to its average historical valuations.

Despite generating a return of 133.01% in the past year, the company's profits have only risen by 222.7%, resulting in a PEG ratio of 0. This indicates that the stock may be overvalued and investors should exercise caution before making any investment decisions. Overall, Jupiter Infomedia's stock is currently a 'Hold' based on its recent performance and valuation.