Monarch Networth Capital Receives 'Buy' Rating, Shows Strong Long-Term Growth

Monarch Networth Capital, a smallcap finance company, has recently received a 'Buy' rating from MarketsMOJO. This upgrade is based on the company's strong long-term fundamental strength, with an average Return on Equity (ROE) of 23.16%. Additionally, the company has shown healthy growth in operating profit, with an annual rate of 65.67%.
In the latest quarter, Monarch Networth Capital declared very positive results, with a growth in net profit of 31.17%. This is the fifth consecutive quarter of positive results for the company. The company's net sales and operating profit to net sales have also reached their highest levels at Rs 83.95 crore and Rs 56.27 crore, respectively.

Technically, the stock is in a bullish range and has shown improvement from mildly bullish to bullish on 11-Oct-24. Multiple factors, such as MACD, Bollinger Band, KST, and DOW, indicate a bullish trend for the stock.

Monarch Networth Capital has also outperformed BSE 500 in the last 3 years, 1 year, and 3 months, with a return of 115.83% in the last 1 year. However, there are some risks associated with the stock. The company has a high valuation with a price to book value of 9.4, which may be a concern for some investors. Additionally, while the stock has shown a significant return in the past year, its profits have only risen by 207.3%, resulting in a low PEG ratio of 0.1.

Another risk factor is that despite being a smallcap company, domestic mutual funds hold only 0.07% of the company. This may indicate that they are not comfortable with the current price or the business of the company.

In conclusion, Monarch Networth Capital has shown strong long-term fundamental strength and has received a 'Buy' rating from MarketsMOJO. However, investors should consider the risks associated with the stock before making any investment decisions.