Sera Investments & Finance India: A Promising 'Buy' with Strong Growth and Market-Beating Performance

Sera Investments & Finance India, a microcap trading company, has recently caught the attention of investors with its upgraded 'Buy' stock call by MarketsMOJO on July 2, 2024.
The company has shown a healthy long-term growth with an annual rate of 79.43% in Net Sales and 74.78% in Operating Profit. In fact, in the last quarter, the company declared very positive results with a growth of 543.37% in Operating Profit. This trend has been consistent for the past 4 quarters, with PBT LESS OI(Q) growing at 811.4% and PAT(Q) growing at 176.2%. The company's NET SALES(9M) have also increased to Rs 15.80 cr.

Technically, the stock is in a bullish range and has shown improvement from mildly bullish to bullish on July 2, 2024. Multiple factors such as RSI, MACD, Bollinger Band, KST, and OBV indicate a bullish trend for the stock.

However, there are some risks associated with investing in Sera Investments & Finance India. The company has a low ROCE of 3.75%, indicating poor management efficiency. Additionally, its high Debt to EBITDA ratio of -1.00 times raises concerns about its ability to service debt. The company also has a low Return on Equity (avg) of 1.33%, signifying low profitability per unit of shareholders' funds.

Despite these risks, the stock has shown market-beating performance in the long term, generating 61.69% returns in the last year and outperforming BSE 500 in the last 3 years, 1 year, and 3 months.

In terms of valuation, the stock is trading at a discount compared to its average historical valuations. Its PEG ratio of 0 also indicates that the stock is undervalued. However, with a ROCE of -22.8, the stock is considered to be very expensive with a 4.4 Enterprise value to Capital Employed.

Overall, Sera Investments & Finance India has shown promising growth and market-beating performance, making it a potential 'Buy' for investors. However, it is important to consider the risks associated with the company before making any investment decisions.