SagarSoft (India) Receives 'Hold' Rating from MarketsMOJO, Despite Positive Quarterly Growth

SagarSoft (India) has recently been downgraded to a 'Hold' by MarketsMOJO due to its low Debt to Equity ratio and poor long term growth. The company's latest financial results for the quarter ending June 2024 showed positive growth, with PBT LESS OI(Q) at Rs 2.23 crore, a 355.10% increase, and PAT(Q) at Rs 2.05 crore, a 454.1% increase. However, the stock is currently in a Mildly Bullish range, with multiple technical indicators such as MACD, Bollinger Band, KST, and OBV showing a bullish trend.
One of the major factors contributing to the 'Hold' rating is the company's ROE of 12.2, which indicates a very attractive valuation with a 2.1 price to book value. The stock is also trading at a discount compared to its average historical valuations. However, despite generating a return of 58.24% in the last year, SagarSoft's profits have only risen by 10%, resulting in a PEG ratio of 1.4.

The majority shareholders of SagarSoft (India) are the promoters, which may indicate a lack of interest from external investors. However, the stock has still outperformed the market (BSE 500) with a return of 58.24% compared to the market's 37.71% return in the last year.

Overall, while SagarSoft (India) has shown positive growth in its latest financial results, its long term growth has been poor with an annual rate of -7.10% for the last 5 years. This, combined with the 'Hold' rating from MarketsMOJO, suggests that investors should approach this stock with caution.