Saksoft Receives 'Hold' Rating from MarketsMOJO, Technical Trends Show Improvement

Saksoft, a smallcap IT software company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade is based on the company's low Debt to Equity ratio, which is currently at 0 times. The technical trend of the stock has also improved from Mildly Bearish to Mildly Bullish on 29-Nov-24, with its Bollinger Band and OBV technical factors also showing a Bullish trend.
The company has a Fair valuation with a Price to Book Value of 5.6 and a ROE of 17.2. However, the stock is currently trading at a premium compared to its average historical valuations. In the past year, while the stock has generated a negative return of -12.66%, its profits have increased by 2.3%. The PEG ratio of the company is 16.3, indicating a potential overvaluation.

In the recent quarter, Saksoft's ROCE (HY) was at its lowest at 21.94%. Despite being a smallcap company, domestic mutual funds hold only 0% of the company. This could be due to their lack of comfort with the current stock price or the business itself. The company has also underperformed the market (BSE 500) in the last year, generating negative returns while the market has seen a positive return of 26.22%.

Overall, while Saksoft has shown some positive technical trends and a fair valuation, its recent underperformance and lack of interest from domestic mutual funds may be a cause for concern. Investors are advised to hold on to their stocks for now and keep an eye on the company's future performance.