PMC Fincorp's Stock Upgraded to 'Buy' After Consistent Growth and Attractive Valuation

PMC Fincorp, a microcap finance company, has recently caught the attention of investors as its stock has been upgraded to a 'Buy' by MarketsMOJO on October 7, 2024. This upgrade comes after the company declared outstanding results for the quarter ending June 2024, with a growth in net profit of 52.21%. This positive trend has been consistent for the past 7 quarters, with the company's operating cash flow at its highest at Rs 10.03 crore and net sales at Rs 13.84 crore.
The stock is currently in a bullish range and has shown a significant improvement in its technical trend since October 4, 2024, generating a return of -4.83%. Multiple factors such as MACD, Bollinger Band, KST, and OBV indicate a bullish trend for the stock.

One of the major reasons for the 'Buy' recommendation is the company's attractive valuation, with a price to book value of 2.5 and a PEG ratio of 0.1. This indicates that the stock is trading at a discount compared to its historical valuations. In the past year, the stock has generated a return of 212.94%, while its profits have risen by 391.1%.

However, there are some risks associated with investing in PMC Fincorp. The company has a weak long-term fundamental strength, with an average return on equity (ROE) of 2.10%. Additionally, its long-term growth has been poor, with an annual growth rate of -206.27% in operating profit.

Despite these risks, PMC Fincorp has shown market-beating performance in both the long-term and near-term, outperforming BSE 500 in the last 3 years, 1 year, and 3 months. With a positive trend and attractive valuation, the stock is definitely worth considering for investors looking for potential growth in the finance/NBFC industry.