Objectone Information Systems Receives 'Hold' Rating Amid Bullish Trend and Strong Returns

Objectone Information Systems, a microcap IT software company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes as the stock has shown a bullish trend and has generated a return of 4.93% since 08-Jan-24. The technical indicators such as MACD, Bollinger Band, and KST are all pointing towards a bullish outlook for the stock.
In terms of valuation, Objectone Information Systems has an attractive ROE of 11.9 and a price to book value of 1.3, which is fair compared to its historical average. The company has also shown consistent returns over the last 3 years, outperforming the BSE 500 index.

However, the company's long-term fundamental strength is weak with an average ROE of 5.75%. Additionally, its ability to service its debt is also a concern with a poor EBIT to Interest ratio of 1.30. In the last quarter of Mar 23, the company's net sales were at its lowest at Rs 9.20 crore.

Despite these weaknesses, Objectone Information Systems has still managed to generate a return of 33.13% in the past year, with profits rising by 56%. The PEG ratio of the company is also at a low of 0.2, indicating potential for future growth.

The majority shareholders of Objectone Information Systems are non-institutional investors, which may indicate a lack of confidence from larger investors. However, with a 'Hold' rating from MarketsMOJO and a bullish technical trend, the stock may still hold potential for investors.