Nagreeka Capital & Infrastructure Receives 'Hold' Rating After Strong Quarterly Results

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 for the quarter ending June 2024, with a growth in net profit of 32.02%. This marks the fifth consecutive quarter of positive results for the company.
The stock is currently in a bullish range and the technical trend has improved from mildly bullish to bullish on September 30, 2024. Multiple factors, such as MACD, Bollinger Band, and OBV, indicate a bullish outlook for the stock.

The majority shareholders of Nagreeka Capital & Infrastructure are the promoters, which adds to the stability and confidence in the company. Additionally, the stock has consistently outperformed the BSE 500 index in the last three annual periods, with a return of 56.26% in the last year alone.

However, the company does have some weak long-term fundamental strengths. Its average return on equity (ROE) is only 3.02%, indicating poor long-term growth. Net sales have also declined at an annual rate of -17.55%, and operating profit at -14.63%.

Furthermore, the stock is currently trading at a very expensive valuation with a price to book value of 13.1. However, it is still at a fair value compared to its average historical valuations. In the past year, the stock has generated a return of 56.26%, while its profits have risen by 146%. This gives the company a PEG ratio of 0, which suggests that it is not overvalued.

In conclusion, Nagreeka Capital & Infrastructure has shown positive results in the recent quarter and has a bullish outlook. However, its weak long-term fundamental strengths and expensive valuation should be considered before making any investment decisions.