LKP Finance Receives 'Hold' Rating from MarketsMOJO, Shows Strong Performance in Past Year

LKP Finance, a microcap finance company, has recently received a 'Hold' rating from MarketsMOJO on March 13, 2024. This upgrade comes as the company has shown positive results for the past 5 consecutive quarters. Its PBT LESS OI(Q) has grown at an impressive rate of 70.0%, while its PAT(Q) and NET SALES(Q) have also seen significant growth at 63.4% and 37.5%, respectively.
Technically, the stock is in a mildly bullish range with multiple factors such as MACD, KST, and DOW indicating a bullish trend. Additionally, with a ROE of 11.4, the stock is currently trading at an attractive valuation with a price to book value of 0.6. It is also trading at a fair value compared to its average historical valuations.

In the past year, LKP Finance has outperformed the market (BSE 500) with a return of 119.30%, while its profits have risen by an impressive 503.9%. This is reflected in the company's low PEG ratio of 0, indicating its market-beating performance.

However, the company's long-term fundamental strength is weak with an average ROE of 11.94% and poor growth in operating profit at an annual rate of -9.11%. This may be a cause for concern for long-term investors.

Moreover, institutional investors have decreased their stake in LKP Finance by -3.62% over the previous quarter and currently hold 0% of the company. This could be a sign of their lack of confidence in the company's fundamentals.

Overall, while LKP Finance has shown strong performance in the past year, its long-term fundamentals and institutional investor participation may be a cause for caution. Investors are advised to do their own research and analysis before making any investment decisions.