Saksoft Receives 'Hold' Rating from MarketsMOJO, Shows Strong Financials and Bullish Trend

Saksoft, a smallcap IT software company, has recently received a 'Hold' rating from MarketsMOJO on September 9, 2024. The company's low Debt to Equity ratio, which is at 0 times on average, is one of the reasons for this upgrade.
In addition, Saksoft has shown positive results in the quarter ending June 2024, with its operating cash flow at its highest at Rs 116.69 crore and net sales at Rs 201.01 crore. The company also has a strong cash position, with cash and cash equivalents at Rs 192.52 crore in the first half of the year.

From a technical standpoint, the stock is currently in a bullish range and has shown a 1.51% return since September 6, 2024. Multiple indicators such as MACD, Bollinger Band, KST, and OBV suggest a bullish trend for the stock.

With a ROE of 19, Saksoft is fairly valued with a price to book value of 6.8. However, the stock is currently trading at a premium compared to its historical valuations. In the past year, while the stock has generated a negative return of -1.89%, its profits have increased by 8.2%. The PEG ratio of the company is 4.6.

Interestingly, despite being a smallcap company, domestic mutual funds hold only 0% of Saksoft's shares. This could indicate that they are either not comfortable with the current price or have not conducted thorough research on the company.

In the last year, Saksoft has underperformed the market, with the BSE 500 generating a return of 33.83% while the stock has generated a negative return of -1.89%. This could be a cause for concern for investors. However, with the recent 'Hold' rating from MarketsMOJO and the company's strong financials, it may be worth keeping an eye on Saksoft for potential future growth.