Mangal Credit & Fincorp Receives 'Hold' Rating After Strong Quarter Results

Mangal Credit & Fincorp, a microcap finance company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes after the company declared very positive results in December 2023, with a growth in net sales of 14.59%. This marks the sixth consecutive quarter of positive results for the company.
The company's net sales for the quarter were at an all-time high of Rs 8.64 crore, with PBDIT and PAT also reaching their highest levels at Rs 6.39 crore and Rs 2.86 crore respectively. This positive trend is reflected in the stock's technical analysis, with it currently in a mildly bullish range and the Bollinger Band showing a bullish trend since March 19, 2024.

However, despite these positive indicators, the stock is currently trading at a premium compared to its historical valuations. Over the past year, while the stock has generated a return of 10.86%, its profits have risen by 37.8%, resulting in a PEG ratio of 0.6. This suggests that the stock may be slightly overvalued.

In terms of long-term fundamental strength, the company has an average ROE of 7.38%, which is lower than the market average. Additionally, there has been a decrease in promoter confidence, with promoters reducing their stake in the company by -4.81% over the previous quarter. This could indicate a lack of confidence in the future of the business.

Overall, Mangal Credit & Fincorp has shown positive growth and results in the past few quarters, but there are some concerns about its valuation and long-term fundamental strength. Investors may want to hold onto their current positions and monitor the company's performance in the coming quarters before making any further investment decisions.