SBFC Finance Receives 'Buy' Rating from MarketsMOJO, Shows Strong Long-Term Growth Potential

SBFC Finance, a midcap finance company, has recently received a 'Buy' rating from MarketsMOJO. This upgrade is based on the company's strong long-term fundamental strength, with a remarkable 132.37% CAGR growth in operating profits. This is a clear indication of the company's healthy long-term growth potential.
In addition, SBFC Finance has shown consistent positive results for the last 5 consecutive quarters, with a growth in net profit of 6.68%. The company's net sales have also grown at an annual rate of 38.80%, while operating profit has seen a significant growth of 132.37%. In fact, the company's net sales and operating profit for the last quarter were the highest at Rs 314.22 crore and Rs 214.33 crore respectively.

From a technical standpoint, the stock is currently in a mildly bullish range, with both its KST and DOW technical factors showing a bullish trend. Moreover, with a ROE of 9.7 and a fair valuation of 3.1 price to book value, the stock seems to be a good investment opportunity.

One of the major factors that make SBFC Finance a promising investment is its high institutional holdings at 20.82%. This indicates that these investors have better capability and resources to analyze the company's fundamentals, making it a reliable choice for investors.

However, it is important to note that the stock has underperformed the market in the last 1 year, generating negative returns of -3.75% while the market (BSE 500) has seen a return of 34.46%. This could be a potential risk for investors to consider.

Overall, SBFC Finance seems to be a strong player in the finance industry, with a positive outlook for the future. Its consistent growth and strong fundamentals make it a 'Buy' for investors looking for a midcap stock in the finance sector.