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

Quasar India, a microcap trading company, has recently received a 'Hold' rating from MarketsMOJO on September 3, 2024. This upgrade comes as the company has shown positive results for the past 5 consecutive quarters, with its net sales reaching a high of Rs 11.24 crore and PBDIT at Rs 1.09 crore. Additionally, the PBT LESS OI has also seen a significant increase, reaching Rs 1.04 crore.
Technically, the stock is currently in a mildly bullish range, with its trend improving from sideways on September 3, 2024. Multiple factors, such as MACD, Bollinger Band, KST, and OBV, indicate a bullish outlook for the stock.

At a ROE of 21.3, Quasar India has a very attractive valuation with a price to book value of 1.4. The stock is currently trading at a discount compared to its average historical valuations. However, over the past year, while the stock has generated a return of 5.34%, its profits have fallen by -2.3%.

Majority shareholders of Quasar India are non-institutional investors, indicating a lack of confidence from big players in the market.

The company's long-term fundamental strength is weak, with a CAGR growth of only 15.29% in net sales over the last 5 years. Additionally, its ability to service its debt is poor, with a low EBIT to Interest ratio of -0.19. The company has also struggled with low profitability, generating a return on equity of only 3.22% per unit of shareholders' funds.

In the last year, Quasar India has underperformed the market, with a return of only 5.34%, compared to the market's (BSE 500) return of 38.66%. While the company has shown positive results in the past few quarters, its weak long-term fundamentals and underperformance in the market may be a cause for concern for potential investors.