Medico Intercontinental Receives 'Hold' Rating from MarketsMOJO, Shows Strong Long-Term Growth

Medico Intercontinental, a microcap company in the finance/NBFC industry, has recently received a 'Hold' rating from MarketsMOJO on November 28, 2024. This upgrade is based on the company's strong long-term fundamental strength, with an average Return on Equity (ROE) of 20.91%.
The company has shown healthy long-term growth, with its Net Sales growing at an annual rate of 11.40% and Operating profit at 53.69%. In addition, the company has also reported positive results in September 2024, with its Operating Cash Flow at its highest at Rs 5.58 crore, PBDIT at Rs 2.79 crore, and PBT less OI at Rs 2.30 crore.

Technically, the stock is currently in a Mildly Bullish range, with its technical trend improving from Mildly Bearish on November 28, 2024. The stock's RSI and KST technical factors are also Bullish, indicating a positive outlook for the company.

At a ROE of 10, Medico Intercontinental is considered to have an attractive valuation with a 1.2 Price to Book Value. However, the stock is currently trading at a premium compared to its average historical valuations. Over the past year, while the stock has generated a return of -36.05%, its profits have risen by 26.5%, resulting in a PEG ratio of 0.5.

The majority shareholders of Medico Intercontinental are the promoters, indicating their confidence in the company's future prospects. However, the stock has underperformed the market (BSE 500) in the last year, generating negative returns of -36.05% compared to the market's 26.36% returns.

Overall, with its strong fundamental strength and positive technical indicators, Medico Intercontinental is a stock to watch out for in the finance/NBFC industry. However, investors should also consider the company's underperformance in the last year and its premium valuation before making any investment decisions.