Mangal Credit & Fincorp's Stock Upgraded to 'Hold' by MarketsMOJO Amid 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 29, 2024. This upgrade comes as the company has declared positive results for the last 7 consecutive quarters, with a growth of 27.44% in PAT (9M) and highest net sales and PBDIT (Q) at Rs 9.43 cr and Rs 6.46 cr respectively.
Technically, the stock is in a bullish range and has shown improvement from mildly bullish to bullish on July 24, 2024. Multiple factors such as MACD, Bollinger Band, and KST are also indicating a bullish trend for the stock.

With a return on equity (ROE) of 9.2, the stock is currently fairly valued with a price to book value of 2.1. However, it is trading at a premium compared to its average historical valuations. In the past year, the stock has generated a return of 32.91%, while its profits have risen by 33.4%. This gives the company a PEG ratio of 0.8, indicating a potential for future growth.

It is worth noting that the majority shareholders of Mangal Credit & Fincorp are the promoters themselves, which may indicate their confidence in the company's performance.

However, the company does have weak long-term fundamental strength with an average ROE of 7.38%. This may be a cause for concern for investors, as it may affect the company's future growth potential.

Overall, with positive results and a bullish trend, Mangal Credit & Fincorp's stock has been upgraded to 'Hold' by MarketsMOJO. While the company's current valuation may be fair, its weak long-term fundamental strength should be taken into consideration by investors.