MarketsMOJO Upgrades First Custodian Fund(I) to 'Hold' Rating Amid Bullish Trend and Strong Valuation

First Custodian Fund(I) has recently been upgraded to a 'Hold' rating by MarketsMOJO, a leading stock analysis platform. The stock is currently in a bullish range and has shown improvement in its technical trend since November 12, 2024. This is supported by multiple factors such as MACD, Bollinger Band, KST, and OBV.
One of the key reasons for the 'Hold' rating is the company's attractive valuation with a price to book value of 1.4 and a return on equity (ROE) of 16.5. This indicates that the stock is trading at a fair value compared to its historical valuations. Additionally, the company has shown strong growth in profits, with a 215% increase in the past year, resulting in a PEG ratio of 0.

The majority shareholders of First Custodian Fund(I) are the promoters, which is a positive sign for investors. The stock has also outperformed the BSE 500 index in the last 3 years, 1 year, and 3 months, showcasing its market-beating performance in the long term as well as the near term.

However, it is important to note that the company has weak long-term fundamental strength, with an average ROE of 4.45%. The results for June 2024 were also flat, indicating a need for improvement in the company's performance.

Overall, the 'Hold' rating on First Custodian Fund(I) suggests that while the stock has potential for growth, it is currently trading at a fair value and investors should carefully monitor its performance before making any investment decisions.