Quasar India Receives 'Hold' Rating from MarketsMOJO, Shows Positive Results in Last 5 Quarters

Quasar India, a microcap trading company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes as the company has shown positive results for the last five consecutive quarters. In fact, its net sales for the quarter have reached a record high of Rs 11.24 crore, while its PBDIT and PBT LESS OI have also seen significant growth.
Technically, the stock is currently in a mildly bullish range and has shown improvement from a sideways trend on 23-Sep-24. Multiple factors such as MACD, Bollinger Band, KST, and OBV are also indicating a bullish trend for the stock.

With a ROE of 21.3, Quasar India is currently trading at a very attractive valuation with a price to book value of 1.6. It is also trading at a discount compared to its average historical valuations. However, over the past year, the stock has generated a negative return of -3.37%, while its profits have also fallen by -2.3%.

The majority shareholders of Quasar India are non-institutional investors. The company's long-term fundamental strength is weak with a CAGR growth of only 15.29% in net sales over the last five years. Additionally, its ability to service its debt is poor with a negative EBIT to interest ratio of -0.19. The company has also shown low profitability per unit of shareholders' funds with a return on equity of 3.22%.

In the last year, Quasar India has underperformed the market (BSE 500) with negative returns of -3.37%, while the market has generated positive returns of 40.49%. Despite the recent upgrade to a 'Hold' rating, investors should carefully consider the company's weak long-term fundamentals and underperformance in the market before making any investment decisions.