NPR Finance Receives 'Hold' Rating After Strong Q3 Results

NPR Finance, a microcap finance company, has recently received a 'Hold' rating from MarketsMOJO on July 29, 2024. This upgrade comes after the company reported positive results in the third quarter of the fiscal year 2024. The company's profits have grown significantly, with a PAT (9M) of Rs 1.04 crore, showing a growth of 157.14%. Additionally, the PBDIT (Q) has reached its highest at Rs 0.36 crore, while the PBT LESS OI (Q) has also shown a significant increase at Rs 0.19 crore.
Technically, the stock is currently in a bullish range and has shown improvement since July 26, 2024, generating a return of 4.76%. Multiple factors such as MACD, Bollinger Band, KST, and OBV are all indicating a bullish trend for the stock.

With a ROE of 2.1, NPR Finance is currently fairly valued with a price to book value of 0.3. The stock is also trading at a discount compared to its historical valuations. In the past year, the stock has generated a return of 71.11%, while its profits have risen by 153.2%. The PEG ratio of the company is also at a low of 0.1.

The majority shareholders of NPR Finance are the promoters, indicating their confidence in the company's performance. The stock has also outperformed the market (BSE 500) with a return of 71.11% in the last year, compared to the market's return of 37.44%.

However, the company's long-term fundamental strength is weak, with an average ROE of 2.34%. The net sales have shown a negative growth rate of -23.70%, and the operating profit has also declined significantly at -208.65%. This indicates poor long-term growth for the company.

Overall, while NPR Finance has shown positive results in the recent quarter and is currently in a bullish trend, its long-term growth potential may be a cause for concern. Investors are advised to hold onto their stocks for now and monitor the company's performance closely.