Onward Technologies Upgraded to 'Hold' Rating by MarketsMOJO, Attractive Valuation and Increasing Institutional Interest

Onward Technologies, a microcap IT software company, has recently been upgraded to a 'Hold' rating by MarketsMOJO on July 1, 2024. This upgrade is based on the company's low Debt to Equity ratio of 0.08 times and a return on equity (ROE) of 16.4, making it a very attractive valuation with a price to book value of 4.6.
The stock is currently trading at a discount compared to its historical valuations, making it a good opportunity for investors. Despite a negative return of -16.94% in the past year, the company's profits have increased by 195.2%, resulting in a low PEG ratio of 0.2.

Institutional investors have also shown an increasing interest in the company, with a 1.86% increase in their stake in the previous quarter. This is a positive sign as these investors have better resources and capabilities to analyze the fundamentals of companies.

However, the company's results for the quarter ending March 2024 were flat, with the lowest PBDIT (profit before depreciation, interest, and taxes) at Rs 9.65 crore and the lowest operating profit to net sales at 8.15%. The PBT (profit before tax) less OI (other income) was also at its lowest at Rs 6.19 crore.

Technically, the stock is currently in a mildly bearish range, with the key technical factor MACD (moving average convergence divergence) being bearish since July 1, 2024.

In the past year, Onward Technologies has underperformed the market (BSE 500) with a negative return of -16.94%, while the market has generated a return of 37.64%. This could be a concern for investors, but with the recent upgrade to a 'Hold' rating and the company's strong fundamentals, it could be a good long-term investment opportunity.