Quest Capital Markets Receives Upgraded Stock Call from MarketsMOJO Based on Strong Financial Results

Quest Capital Markets, a microcap finance company, has recently received an upgraded stock call from MarketsMOJO. The stock has been upgraded to 'Hold' on 14th May 2024. This upgrade is based on the company's positive financial results in March 2024.
One of the key factors contributing to this upgrade is the company's strong cash position, with cash and cash equivalents at a record high of Rs. 29.69 crore. Additionally, the company's PBDIT and PBT LESS OI have also reached their highest levels at Rs. 22.10 crore.

From a technical standpoint, the stock is currently in a bullish range and the technical trend has improved from mildly bullish to bullish on 14th May 2024. This is supported by multiple factors such as MACD, Bollinger Band, and KST.

With a ROE of 2, the stock is currently fairly valued with a price to book value of 0.4. However, it is trading at a premium compared to its average historical valuations. Despite this, the stock has generated a return of 53.78% in the past year, outperforming the BSE 500 index. However, the company's profits have only risen by 6.8%, resulting in a PEG ratio of 2.9.

The majority shareholders of Quest Capital Markets are the promoters, indicating their confidence in the company's performance. The stock has also shown market-beating performance in the long term, outperforming the BSE 500 index 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 5.54%. This may be a cause for concern for investors. Overall, while the stock has shown strong performance in the near term, its long-term fundamentals may need to be closely monitored.