Palm Jewels Receives 'Hold' Rating from MarketsMOJO Based on Strong Short-Term Financial Results

Palm Jewels, a microcap company in the jewellery industry, has recently received a 'Hold' rating from MarketsMOJO on August 6, 2024. This upgrade is based on the company's positive financial results for the past four consecutive quarters. In fact, Palm Jewels has achieved its highest PBDIT(Q) of Rs 0.60 crore, PBT LESS OI(Q) of Rs 0.59 crore, and PAT(Q) of Rs 0.56 crore.
Technically, the stock is currently in a bullish range and has generated a return of 12.41% since August 1, 2024. The MACD and KST technical factors also indicate a bullish trend for the stock.

With a ROE of 2.8, Palm Jewels is fairly valued with a price to book value of 1.3. In addition, the stock is currently trading at a discount compared to its historical valuations. Despite a return of 73.95% in the past year, the company's profits have only increased by 30%, resulting in a low PEG ratio of 0.1.

The majority of shareholders in Palm Jewels are non-institutional investors. However, the stock has outperformed the market (BSE 500) with a return of 73.95% in the last year, compared to the market's return of 32.32%.

On the other hand, Palm Jewels has weak long-term fundamental strength with an average ROE of 2.85%. The company's operating profit has only grown at an annual rate of 29.23% over the last 5 years, indicating poor long-term growth. Additionally, the company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of 0.57.

Overall, while Palm Jewels has shown positive financial results in the short term, its long-term growth and fundamental strength may be a cause for concern. Investors are advised to hold onto their stocks for now and monitor the company's performance closely.