Ontic Finserve Receives 'Hold' Rating from MarketsMOJO After Positive Quarter Results

Ontic Finserve, a microcap finance company, has recently received a 'Hold' rating from MarketsMOJO on November 21, 2024. This upgrade comes after the company reported positive results in the quarter ending September 24, with its PBDIT(Q), PBT LESS OI(Q), and PAT(Q) reaching their highest levels at Rs 1.38 crore, Rs 1.38 crore, and Rs 1.04 crore respectively.
The stock is currently in a bullish range and has shown a 4.05% return since the technical trend improved from Mildly Bullish on November 18, 2024. This can be attributed to multiple bullish factors such as MACD, Bollinger Band, KST, and OBV.

However, Ontic Finserve's majority shareholders are non-institutional, indicating a weak long-term fundamental strength. The company's average Return on Equity (ROE) stands at 3.19%, which is below the industry average. Additionally, its net sales have declined at an annual rate of -13.55% and operating profit at -197.48%, indicating poor long-term growth.

The stock also has a very expensive valuation with a price to book value of 2.5 and a ROE of -66.9. It is currently trading at a premium compared to its historical valuations. Despite generating a return of 6.94% in the past year, the company's profits have only risen by 96.8%.

In conclusion, while Ontic Finserve's recent performance has been positive, its weak long-term fundamentals and expensive valuation make it a 'Hold' for now. Investors should closely monitor the company's future results and growth before making any investment decisions.