Radiant Cash Management Services Upgraded to 'Hold' Rating by MarketsMOJO

Radiant Cash Management Services, a microcap IT software company, has recently been upgraded to a 'Hold' rating by MarketsMOJO on August 2, 2024. This upgrade is based on the company's high management efficiency, with a ROE of 27.31%, and a low Debt to Equity ratio of 0 times. Additionally, the company has shown healthy long-term growth, with an annual growth rate of 20.20% in Net Sales and 36.25% in Operating profit.
Technically, the stock is currently in a Mildly Bullish range and has shown improvement from a Sideways trend on August 2, 2024. The Bollinger Band, a key technical factor, has also been Bullish since the same date.

Attractive valuation is another factor contributing to the 'Hold' rating, with a ROE of 19.5 and a Price to Book Value of 3.9. However, the stock is currently trading at a premium compared to its average historical valuations. In the past year, the stock has generated a negative return of -14.58%, while its profits have fallen by -28%.

The company has declared negative results for the last 3 consecutive quarters, with a decrease in PAT(Q) at Rs 8.99 crore and PBT LESS OI(Q) at its lowest at Rs 11.36 crore. The EPS(Q) has also fallen to its lowest at Rs 0.84.

Institutional investors have also shown a decrease in their stake by -2.43% over the previous quarter and currently hold 16.48% of the company. This could be due to their better capability and resources to analyze the fundamentals of companies compared to retail investors.

In the last 1 year, Radiant Cash Management Services has underperformed the market (BSE 500) with negative returns of -14.58%, while the market has generated returns of 37.36%. This could be a cause for concern for investors. Overall, with a 'Hold' rating, it is recommended to closely monitor the company's performance before making any investment decisions.