Mefcom Capital Markets Receives 'Hold' Rating After Consistent Positive Results

Mefcom Capital Markets, a microcap finance company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes after the company has consistently shown positive results for the last 5 quarters. In fact, its PAT (profit after tax) for the last 9 months has grown by a whopping 1,625.71%, while its net sales have also increased to Rs 200.37 crore.
The stock is currently in a bullish trend, with technical indicators such as MACD, Bollinger Band, and KST all pointing towards a positive outlook. Additionally, the majority shareholders of the company are its promoters, which can be seen as a vote of confidence in the company's performance.

In terms of market performance, Mefcom Capital Markets has outperformed the BSE 500 index in the last 3 years, 1 year, and 3 months. It has also generated a return of 52.97% in the last year, showcasing its strong performance in the near term.

However, the company's long-term fundamental strength is weak, with an average ROE of 13.57%. Its operating profit has also only grown at an annual rate of 43.07%, indicating slow growth in the long run. Furthermore, with a ROE of 34.5, the stock is currently trading at an expensive valuation with a price to book value of 4.3.

Despite this, the stock is still trading at a discount compared to its historical valuations. In the past year, while the stock has generated a return of 52.97%, its profits have risen by 598%, resulting in a PEG ratio of 0. This suggests that the stock may still have potential for growth in the future.

In conclusion, while Mefcom Capital Markets has shown strong performance in the near term and has received a 'Hold' rating, its long-term fundamental strength and valuation may be cause for concern. Investors should carefully consider these factors before making any investment decisions.