Nagreeka Capital & Infrastructure Receives 'Hold' Rating After Impressive Short-Term Growth

Nagreeka Capital & Infrastructure, a microcap finance company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes after the company reported very positive results in June 2024, with a growth in net profit of 32.02%. In fact, the company has consistently declared positive results for the last 5 consecutive quarters.
One of the main reasons for the 'Hold' rating is the company's impressive growth in net sales, which has grown at a rate of 130.69% in the last 9 months. Additionally, the company's profits have also seen a significant increase, with a growth of 139.09% in the same period.

From a technical standpoint, the stock is currently in a bullish range and the trend has improved from mildly bullish to bullish on October 23, 2024. This is supported by multiple factors such as MACD, Bollinger Band, and KST.

The majority shareholders of Nagreeka Capital & Infrastructure are the promoters, which adds to the company's stability and potential for growth. Furthermore, the stock has consistently outperformed BSE 500 in the last 3 annual periods, with a return of 70.48% in the last year alone.

However, the company does have some weak points in terms of long-term fundamental strength. Its average return on equity (ROE) is 0%, indicating poor long-term growth. Additionally, the net sales have declined at an annual rate of -17.55% and the operating profit is at 0%.

The stock also has a very expensive valuation with a price to book value of 13.9 and a ROE of 638.1. However, it is currently trading at a fair value compared to its historical valuations. Despite the impressive return of 70.48% in the last year, the PEG ratio of the company is 0, indicating that the stock is not overvalued.

In conclusion, Nagreeka Capital & Infrastructure has shown strong growth and stability in the short term, but its long-term fundamentals may need improvement. With a 'Hold' rating from MarketsMOJO, investors may want to keep an eye on this microcap finance company for potential future growth.