Saksoft Receives 'Hold' Rating from MarketsMOJO, Positive Q3 Results, But Technical Trend Sideways

Saksoft, a smallcap IT software company, has recently received a 'Hold' rating from MarketsMOJO on November 11, 2024. This upgrade is based on the company's low Debt to Equity ratio, which is currently at 0 times on average.
The company has also shown positive results in the September 2024 quarter, with its Operating Cash Flow reaching a high of Rs 116.69 crore, Net Sales at Rs 215.29 crore, and PBDIT at Rs 36.77 crore. However, the technical trend for the stock is currently sideways, indicating no clear price momentum. It has improved from being mildly bearish on November 8, 2024, but has only generated a return of -4.05% since then.

With a ROE of 19, Saksoft is considered to have a fair valuation with a Price to Book Value of 5.9. 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 -19.19%, despite its profits rising by 8.2%. This results in a PEG ratio of 4 for the company.

Interestingly, despite being a smallcap company, domestic mutual funds hold only 0% of Saksoft. This could signify that they are not comfortable with the current price or the business, as domestic mutual funds have the capability to conduct in-depth research on companies.

In the last year, Saksoft has underperformed the market (BSE 500), which has generated a return of 30.30%. The stock, on the other hand, has generated negative returns of -19.19%. This could be a cause for concern for investors.