Moneyboxx Finance Receives 'Hold' Rating After Impressive Q2 Results, Stock Shows Mildly Bullish Trend

Moneyboxx Finance, a microcap finance company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes after the company reported outstanding results for the quarter ending June 2024, with a growth in net profit of 162.2%. This marks the seventh consecutive quarter of positive results for the company.
The company's PAT (profit after tax) has grown at an impressive rate of 162.2%, with the highest net sales and PBDIT (profit before depreciation, interest, and taxes) recorded at Rs 45.63 crore and Rs 20.98 crore respectively. This has led to a mildly bullish trend in the stock, with technical indicators showing improvement since October 14, 2024.

However, despite these positive results, Moneyboxx Finance has a weak long-term fundamental strength with an average return on equity (ROE) of 1.08%. Its current ROE of 7 indicates an expensive valuation with a price to book value of 4.7. However, the stock is currently trading at a discount compared to its historical valuations.

In the past year, the stock has generated a return of 40.91%, while its profits have risen by 431.5%. This has resulted in a low PEG ratio of 0.2, indicating that the stock may be undervalued. It is worth noting that despite its small size, domestic mutual funds hold only 0% of the company, which could suggest that they are not comfortable with the current price or the business.

Overall, Moneyboxx Finance has shown strong financial performance in recent quarters, but its long-term fundamentals and valuation may be a cause for concern. Investors should carefully consider these factors before making any investment decisions.