Pro Fin Capital Services Receives 'Hold' Rating from MarketsMOJO After Strong Half Year Performance

Pro Fin Capital Services, a microcap finance company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes as the company's net sales for the half year have shown a significant growth of 48.68%. Additionally, the PBT less OI for the quarter has also seen a remarkable growth of 1010.5%, while the PAT for the same period has grown by 2212.0%. The stock is currently in a bullish range and the technical trend has improved from mildly bullish on 26-Sep-24. Multiple factors such as MACD, Bollinger Band, KST, and OBV are also indicating a bullish trend for the stock. Pro Fin Capital Services has also shown a strong market performance in both the long term and near term. In the last 1 year, the stock has generated a return of 55.00%, outperforming the BSE 500 index. This trend has continued in the last 3 years, 1 year, and 3 months. However, the company's long term fundamental strength is weak with an average ROE of 7.34%. The net sales have also shown a negative growth rate of -16.40% annually. With an ROE of -2.8, the stock is currently trading at an expensive valuation with a 1.4 price to book value. However, it is still trading at a discount compared to its average historical valuations. In the past year, while the stock has generated a return of 55.00%, its profits have fallen by -139.6%. This could be a cause for concern for investors. Another factor to consider is that 28.77% of the promoter shares are pledged. In a falling market, this could put additional downward pressure on the stock prices. Overall, Pro Fin Capital Services has shown strong growth in the recent half year, but its long term fundamentals and high promoter pledged shares should be taken into consideration before making any investment decisions. MarketsMOJO's 'Hold' rating suggests a neutral stance on the stock for now.