SG Finserve Receives 'Hold' Rating from MarketsMOJO, Shows Positive Results in Last 7 Quarters

SG Finserve, a smallcap finance company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes as the company has shown positive results for the last 7 consecutive quarters. In the last quarter, the company's net sales grew by 24.97%, PBT less OI grew by 20.62%, and PAT grew by 24.0%.
Technically, the stock is in a bullish range and the trend has improved from mildly bullish on 09-Oct-24. Multiple factors such as MACD, Bollinger Band, KST, and OBV are also bullish for the stock. With a ROE of 10.3, the stock is fairly valued with a price to book value of 3.5. It is currently trading at a discount compared to its average historical valuations.

However, the company has weak long-term fundamental strength with an average ROE of 6.13%. This may be a concern for investors looking for stable and consistent returns. Additionally, despite being a smallcap company, domestic mutual funds hold only 0% of the company. This could indicate that they are not comfortable with the company's current price or business.

In the last year, SG Finserve has underperformed the market (BSE 500) with negative returns of -5.38%, while the market has generated returns of 37.10%. This could be a red flag for investors and they should carefully consider their investment decisions. Overall, while the company has shown positive results in the short term, its long-term fundamentals and market performance may be a cause for concern.