MarketsMOJO Upgrades Kiduja India to 'Hold' Based on Positive Financial Results and Technical Indicators

MarketsMOJO has recently upgraded its stock call on Kiduja India to 'Hold' based on the company's positive financial results and technical indicators. The company, which operates in the finance/NBFC industry and falls under the microcap category, has shown consistent growth in the last 5 quarters with a 311.04% increase in net sales and a higher PAT of Rs 28.31 crore in the last 9 months.
The stock is currently in a bullish range and the technical trend has improved from mildly bullish to bullish on October 8, 2024. This is supported by multiple factors such as MACD, Bollinger Band, KST, and DOW. Additionally, the promoters of Kiduja India have shown high confidence in the company's future by increasing their stake by 9.99% in the previous quarter, currently holding 75% of the company.

In terms of performance, Kiduja India has not only generated impressive returns of 455.13% in the last year but has also outperformed BSE 500 in the last 3 years, 1 year, and 3 months. However, the company's weak long-term fundamental strength is reflected in its negative book value and poor growth in net sales and operating profit.

Furthermore, with a ROE of -166.4 and a price to book value of -5.1, the company's valuation is considered to be very expensive. Despite the high returns generated in the past year, the profits have only risen by 613%, resulting in a PEG ratio of 0. This indicates that the stock may be overvalued.

Overall, while Kiduja India has shown promising growth and technical indicators, its weak long-term fundamentals and expensive valuation suggest a 'Hold' rating for now. Investors should keep an eye on the company's future financial performance to make informed decisions.