Nam Securities Receives 'Hold' Rating from MarketsMOJO, Shows Positive Results and Bullish Trend

Nam Securities, a microcap finance and NBFC company, has recently received a 'Hold' rating from MarketsMOJO on August 1, 2024. This upgrade comes as the company has shown positive results for the last four consecutive quarters, with a growth of 93.52% in net sales and a higher PAT of Rs 0.08 crore in the last nine months.
The stock is currently in a bullish range, with technical trends improving from mildly bullish on August 1, 2024. Multiple factors such as MACD, Bollinger Band, and KST are also indicating a bullish trend for the stock.

The majority shareholders of Nam Securities are the promoters, which is a positive sign for investors. The stock has also outperformed the market (BSE 500) with a return of 112.72% in the last year, compared to the market's return of 37.25%.

However, the company's long-term fundamental strength is weak, with operating losses and poor growth in operating profit at an annual rate of -6.10%. Additionally, with a ROE of 3, the stock is currently trading at a very expensive valuation with a price to book value of 6.6. This is higher than its average historical valuations.

Despite the stock's impressive return of 112.72% in the past year, its profits have only risen by 30%, resulting in a PEG ratio of 0.1. This indicates that the stock is trading at a premium compared to its earnings growth.

Overall, while Nam Securities has shown positive results and a bullish trend, investors should be cautious of its weak long-term fundamental strength and expensive valuation. The 'Hold' rating from MarketsMOJO suggests a neutral stance on the stock, and investors should carefully consider their options before making any investment decisions.