Orient Tradelink Receives 'Hold' Rating from MarketsMOJO After Positive Results and Bullish Trend

Orient Tradelink, a microcap company in the finance/NBFC industry, has recently received a 'Hold' rating from MarketsMOJO on November 27, 2024. This upgrade comes after the company reported positive results in September 2024, with a significant growth in net sales and higher profits.
The company's net sales for the half-year ending September 2024 stood at Rs 6.33 crore, showing a growth of 129.35% compared to the same period last year. Its profits after tax also saw an increase, reaching Rs 1.10 crore. Additionally, the company's PBDIT for the quarter was at its highest at Rs 1.08 crore.

From a technical standpoint, the stock is currently in a bullish range and has shown improvement from a mildly bullish trend on November 27, 2024. Multiple factors, such as MACD, Bollinger Band, KST, and OBV, indicate a bullish sentiment for the stock.

The majority of the company's shareholders are non-institutional investors, and it has shown market-beating performance in both the long term and near term. In the last year, the stock has generated a return of 145.45%, outperforming the BSE 500 index in the last 3 years, 1 year, and 3 months.

However, the company's long-term fundamental strength is weak, with an average return on equity (ROE) of 8.87%. Its net sales have also shown poor growth, with an annual rate of -8.31%. The stock also has a very expensive valuation, with a price to book value of 3.4 and an ROE of 4.8. This is trading at a premium compared to its average historical valuations.

Despite the stock's impressive returns in the past year, its profits have fallen by -15%. This could be a cause for concern for investors, and it is important to keep an eye on the company's future performance. Overall, while the stock has shown positive growth and a bullish trend, it is important to consider all factors before making any investment decisions.