MAS Financial Services Upgraded to 'Hold' Rating by MarketsMOJO

Aug 28 2024 06:45 PM IST
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MarketsMojo has upgraded MAS Financial Services to a 'Hold' rating based on its strong long-term fundamentals, with an average ROE of 13.67%. The company has declared positive results for 12 consecutive quarters, with a 26.06% growth in net profit in the latest quarter. However, the stock is currently trading at a premium and has underperformed the market in the last year.
MAS Financial Services, a midcap finance company, has recently been upgraded to a 'Hold' rating by MarketsMOJO. This decision is based on the company's strong long-term fundamental strength, with an average Return on Equity (ROE) of 13.67%. In addition, the company has declared positive results for the last 12 consecutive quarters, with a growth in net profit of 26.06% in the latest quarter.

The company's financial performance has been impressive, with its highest net sales and PBDIT in the latest quarter at Rs 364.34 crore and Rs 278.67 crore respectively. Its PBT less OI was also at its highest at Rs 96.36 crore. With a ROE of 14.1, the company has a fair valuation with a price to book value of 2.9. However, the stock is currently trading at a premium compared to its average historical valuations.

In terms of institutional holdings, the company has a high percentage of 23.98%. This indicates that these investors have better capability and resources to analyze the fundamentals of the company compared to retail investors. In fact, their stake has increased by 7.77% over the previous quarter.

From a technical standpoint, the stock is currently in a mildly bearish range, with both its MACD and KST technical factors showing a bearish trend. In the last year, the stock has underperformed the market, generating a return of only 6.61% compared to the market's return of 39.22%.

Overall, while MAS Financial Services has shown strong financial performance and has a fair valuation, its stock is currently trading at a premium and has underperformed the market in the last year. Therefore, MarketsMOJO has upgraded its rating to 'Hold' for now.
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