Om Infra Receives 'Hold' Rating from MarketsMOJO, Despite Strong Performance in Past Year

Om Infra, a smallcap engineering company, has recently received a 'Hold' rating from MarketsMOJO on September 26, 2024. This upgrade comes as the stock is currently in a Mildly Bullish range, with multiple bullish factors such as MACD, KST, and DOW.
One of the reasons for the 'Hold' rating is the stock's attractive valuation, with a price to book value of 2.1 and a return on equity of 6.5. However, it is trading at a premium compared to its historical valuations. Despite this, the stock has generated a return of 93.56% in the past year, with profits increasing by 111.8%. The company's PEG ratio is also at a low of 0.3.

Om Infra has consistently delivered positive returns over the last three years, outperforming the BSE 500 index. However, the company reported negative results in June 2024, with a 48.45% growth in interest and a -29.00% growth in profits. The net sales for the quarter were also at a low of Rs 169.49 crore.

In addition, there has been a decrease in promoter confidence as they have reduced their stake in the company by -1.76% in the previous quarter. Currently, promoters hold 67.33% of the company, which may indicate a lack of confidence in the future of the business.

Overall, while Om Infra has shown strong performance in the past, the recent negative results and decrease in promoter confidence may have led to the 'Hold' rating from MarketsMOJO. Investors should carefully consider these factors before making any investment decisions.