Repco Home Finance downgraded to 'Hold' by MarketsMOJO due to mixed performance and average valuation

Repco Home Finance, a smallcap company in the finance-housing industry, has recently been downgraded to a 'Hold' by MarketsMOJO on October 3, 2024. This decision was based on the company's strong long-term fundamental strength, with an average Return on Equity (ROE) of 13.17%.
The company has also shown positive results for the last 7 consecutive quarters, with a PAT (HY) of Rs 226.24 crore, which has grown at a rate of 26.10%. Additionally, the company's DEBT-EQUITY RATIO (HY) is at its lowest at 3.58 times, and its NET SALES (Q) are at their highest at Rs 407.83 crore.

Technically, the stock is in a mildly bullish range, with its MACD and Bollinger Band technical factors also showing a bullish trend. With an ROE of 13.9, the stock has an attractive valuation with a 1.1 Price to Book Value. It is currently trading at a fair value compared to its average historical valuations.

While the stock has generated a return of 31.80% over the past year, its profits have risen by 30.4%, resulting in a PEG ratio of 0.3. However, the company's long-term growth has been poor, with Net Sales growing at an annual rate of 4.97% and Operating profit at 0.51%.

Despite these factors, the stock has high institutional holdings at 32.84%, indicating that these investors have better capability and resources to analyze the company's fundamentals compared to most retail investors. Overall, MarketsMOJO has downgraded the stock to 'Hold' due to its mixed performance and average valuation.