Maharashtra Scooters Receives 'Hold' Rating, Shows Strong Long-Term Growth

Maharashtra Scooters, a midcap company in the finance/NBFC industry, has recently received a 'Hold' rating from MarketsMOJO. This upgrade is based on the company's strong long-term fundamental strength, with a 25.78% CAGR growth in operating profits.
The company has shown healthy long-term growth, with net sales growing at an annual rate of 72.70% and operating profit at 25.78%. Additionally, the stock is currently in a bullish range, with technical indicators such as MACD, KST, and OBV all pointing towards a positive trend.

At a price to book value of 0.4 and a ROE of 0.8, the stock is considered to be fairly valued. It is also trading at a discount compared to its historical valuations. In the past year, the stock has generated a return of 43.30%, while its profits have risen by 2.1%. However, the PEG ratio of the company is 21.4, indicating that its growth may be overvalued.

It is worth noting that the majority shareholders of Maharashtra Scooters are promoters. However, the company did report negative results in March 2024, with a -71.28% growth in PAT (HY) and a -30.88% growth in net sales (HY). The PBDIT (Q) was also at its lowest at Rs 0.69 cr.

Overall, while the company has shown strong long-term growth and is currently in a bullish trend, the recent negative results may be a cause for concern. Investors may want to hold off on making any decisions until there is more clarity on the company's performance.