Religare Enterprises Receives 'Hold' Rating from MarketsMOJO, Shows Healthy Long-Term Growth

Religare Enterprises, a midcap finance and non-banking financial company (NBFC), has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes as the company has shown healthy long-term growth, with an annual operating profit growth rate of 58.28%.
Technically, the stock is in a mildly bullish range, with both its MACD and OBV technical factors also showing bullish signals. Additionally, the company has a high institutional holding of 21.44%, indicating that these investors have better capabilities and resources to analyze the fundamentals of companies compared to retail investors. In fact, their stake in Religare Enterprises has increased by 1.96% over the previous quarter.

However, the company's long-term fundamental strength is weak, with an average return on equity (ROE) of 1.82%. This signifies low profitability per unit of shareholders' funds. In the latest quarter, the company's profits have also shown a decline, with PAT (HY) at Rs 69.21 crore, growing at -21.59% and PBT LESS OI (Q) at Rs 48.32 crore, falling at -16.37%.

Moreover, with a ROE of 1.5, the stock is currently trading at a very expensive valuation, with a price to book value of 3.3. This is a premium compared to its average historical valuations. In the past year, while the stock has generated a return of 10.19%, its profits have fallen by -81.3%.

Overall, Religare Enterprises has underperformed the market in the last year, with a return of 10.19%, much lower than the market (BSE 500) returns of 26.29%. Investors are advised to hold onto their positions in the stock, as it shows potential for long-term growth but also has some weaknesses that need to be monitored closely.