Mangal Credit & Fincorp's Stock Upgraded to 'Hold' Amidst Positive Results and Bullish Trend

Mangal Credit & Fincorp, a microcap finance company, has recently caught the attention of investors as its stock call has been upgraded to 'Hold' by MarketsMOJO on July 18, 2024.
The company has been consistently delivering positive results for the past 7 quarters, with a growth of 26.74% in its PAT (HY) and the highest net sales (Q) and PBDIT (Q) at Rs 9.43 cr and Rs 6.46 cr respectively. This has led to a bullish trend in the stock, with technical indicators such as MACD, Bollinger Band, and KST all pointing towards a positive outlook.

However, with a ROE of 9.2 and a fair valuation of 2.1 Price to Book Value, the stock is currently trading at a premium compared to its historical valuations. Despite generating a return of 22.04% in the past year, the company's profits have only risen by 33.4%, resulting in a PEG ratio of 0.8.

It is worth noting that the majority shareholders of Mangal Credit & Fincorp are its promoters, indicating their confidence in the company's future prospects. However, the company's weak long-term fundamental strength, with an average ROE of 7.38%, has underperformed the market in the last year, with a return of only 22.04% compared to the market's 36.87%.

In conclusion, while Mangal Credit & Fincorp has shown promising results in the past few quarters and has a bullish technical trend, its premium valuation and weak long-term fundamentals suggest a 'Hold' stance for now. Investors should keep an eye on the company's future performance and monitor any changes in its valuation and fundamentals.