Oasis Securities Receives 'Hold' Rating from MarketsMOJO After Strong Financial Performance

Oasis Securities, a microcap finance and non-banking financial company (NBFC), has recently received a 'Hold' rating from MarketsMOJO on November 4, 2024. This upgrade is based on several factors, including the company's strong financial performance in the last quarter.
According to MarketsMOJO, Oasis Securities has reported its highest PBDIT (Profit Before Depreciation, Interest, and Taxes) of Rs 0.77 crore, PBT (Profit Before Tax) less OI (Other Income) of Rs 0.76 crore, and PAT (Profit After Tax) of Rs 0.95 crore in the last quarter. This indicates a positive trend in the company's financials.

In addition, the stock is currently in a bullish range and has shown a 4.99% return since November 1, 2024. The technical trend has also improved from mildly bullish to bullish, with factors like MACD, Bollinger Band, KST, and DOW all pointing towards a positive outlook for the stock.

The majority shareholders of Oasis Securities are its promoters, which adds to the confidence in the company's performance. Moreover, the stock has consistently outperformed BSE 500 in the last three annual periods, with a remarkable 233.00% return in the last year alone.

However, despite its strong performance, Oasis Securities has a weak long-term fundamental strength with a CAGR growth of only 25.95% in operating profits. Additionally, with a ROE (Return on Equity) of 14.2, the stock is currently trading at a very expensive valuation with a price to book value of 4.5. However, it is still trading at a discount compared to its average historical valuations.

Overall, Oasis Securities has shown promising growth in the last quarter and has consistently outperformed the market in the past year. While its long-term fundamental strength may be weak, the stock is still trading at a discount and has a positive outlook based on technical indicators. Investors may consider holding onto their positions in Oasis Securities for now.