Prudent Corporate Advisory Services Receives 'Buy' Rating, Shows Strong Long-Term Growth

Prudent Corporate Advisory Services, a midcap finance company, has recently received a 'Buy' rating from MarketsMOJO. This upgrade is based on the company's strong long-term fundamental strength, with an average Return on Equity (ROE) of 32.35%. This is a positive sign for investors looking to invest in the finance/NBFC industry.
The company has shown healthy long-term growth, with its net sales growing at an annual rate of 33.65% and operating profit at 49.85%. In addition, Prudent Corporate Advisory Services has declared positive results for the last 7 consecutive quarters, with its highest net sales, PBDIT, and PBT LESS OI in the last quarter.

From a technical standpoint, the stock is currently in a bullish range and the trend has improved from mildly bullish to bullish on 11-Jun-24. Multiple factors such as MACD, Bollinger Band, KST, and DOW are also indicating a bullish trend for the stock.

Moreover, the company has a high institutional holding of 27.79%, which shows that these investors have better capability and resources to analyze the fundamentals of companies compared to retail investors. In fact, their stake in Prudent Corporate Advisory Services has increased by 8.28% over the previous quarter.

In terms of performance, the stock has outperformed the market (BSE 500) with a return of 102.14% in the last year, compared to the market's return of 36.93%. This is a clear indication of the company's market-beating performance.

However, there are some risks associated with investing in Prudent Corporate Advisory Services. With an ROE of 28.8, the stock is currently trading at a very expensive valuation with a price to book value of 15.3. This is higher than its average historical valuations. Additionally, while the stock has generated a high return in the past year, its profits have only increased by 18.9%, resulting in a PEG ratio of 2.8.

In conclusion, Prudent Corporate Advisory Services is a strong midcap company in the finance/NBFC industry with a positive outlook. Its recent 'Buy' rating from MarketsMOJO and its consistent positive results make it an attractive investment option. However, investors should also consider the risks associated with the stock before making any investment decisions.