MarketsMOJO Upgrades SPS Finquest to 'Hold' Based on Strong Fundamentals and Market Performance

MarketsMOJO has recently upgraded its stock call on SPS Finquest to 'Hold' on 2024-11-04. This decision was based on the company's strong long-term fundamental strength, with an average Return on Equity (ROE) of 36.31%. Additionally, the company has shown healthy long-term growth, with an annual growth rate of -68.82% in operating profit.
Furthermore, SPS Finquest has recently declared positive results in Jun'2024 after two consecutive negative quarters, with a growth of 181.78% in PAT(HY). The stock is also currently in a bullish range, with technical trends showing improvement and generating a return of 4.99% since 01-Nov-24. Multiple factors, such as MACD, Bollinger Band, and KST, indicate a bullish outlook for the stock.

The majority shareholders of SPS Finquest are the promoters, and the company has shown market-beating performance in both the long-term and near-term. In the last year, the stock has generated a return of 95.72%, outperforming BSE 500.

However, with an ROE of 6.5, the stock is currently trading at a very expensive valuation, with a 2 Price to Book Value. Despite this, the stock is still trading at a discount compared to its average historical valuations. It is also worth noting that while the stock has shown strong returns in the past year, its profits have fallen by -63.5%.

Overall, MarketsMOJO's upgraded 'Hold' call on SPS Finquest is based on the company's strong fundamentals and market-beating performance. However, investors should also consider the expensive valuation and recent decline in profits before making any investment decisions.