NPR Finance Receives 'Hold' Rating from MarketsMOJO After Positive Results

NPR Finance, a microcap finance company, has recently received a 'Hold' rating from MarketsMOJO on August 12, 2024. This upgrade comes after the company reported positive results in March 2024, with a higher profit after tax of Rs. 0.14 crore and the highest PBDIT (profit before depreciation, interest, and taxes) of Rs. 0.36 crore. The company also saw its PBT (profit before tax) less OI (other income) reach its highest at Rs. 0.19 crore.
Technically, the stock is currently in a bullish range and has shown improvement since August 6, 2024, generating a return of 1.05%. This is supported by factors such as MACD, KST, and OBV, all indicating a bullish trend.

With a return on equity (ROE) of 2.1, NPR Finance is currently fairly valued with a price to book value of 0.3. In fact, the stock is currently trading at a discount compared to its historical valuations. Over the past year, the stock has generated a return of 77.94%, while its profits have increased by 153.2%. This is reflected in the company's low PEG ratio of 0.1.

The majority shareholders of NPR Finance are its promoters, indicating their confidence in the company's performance. In fact, the stock has not only outperformed the BSE 500 index in the last year, but also in the last 3 years, 1 year, and 3 months, showcasing its market-beating performance.

However, the company's long-term fundamental strength is weak, with an average ROE of 0.95%. This is further supported by poor long-term growth, with net sales growing at an annual rate of -23.70% and operating profit at -11.54%.

Overall, while NPR Finance has shown promising results in the short term, its long-term performance may be a cause for concern. Investors are advised to hold onto their stocks for now and keep an eye on the company's future growth.