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

First Custodian Fund(I) has recently been upgraded to a 'Hold' rating by MarketsMOJO, a leading stock analysis platform. The stock, which belongs to the finance/NBFC industry and is classified as a microcap company, has shown a technically bullish trend and has multiple factors supporting its growth.
According to MarketsMOJO, the stock's technical trend has improved from mildly bullish to bullish on October 10, 2024. This is due to factors such as MACD, Bollinger Band, KST, and OBV, all of which are currently bullish for the stock. Additionally, the stock has a return on equity (ROE) of 16.5, making it an attractive valuation with a price to book value of 1.3.

In the past year, the stock has generated a return of 241.91%, outperforming the BSE 500 index. Its profits have also risen by 215%, resulting in a PEG ratio of 0, indicating a fair value for the stock compared to its historical valuations. The majority shareholders of First Custodian Fund(I) are the promoters, which adds to the stability and potential growth of the company.

While the stock has shown strong performance in the long term, it has also outperformed the BSE 500 index in the last 3 years, 1 year, and 3 months. However, it is important to note that the company's long-term fundamental strength is weak, 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, MarketsMOJO's upgrade to a 'Hold' rating for First Custodian Fund(I) is based on its current bullish trend and attractive valuation. However, investors should also consider the weak long-term fundamental strength of the company before making any investment decisions.