Smart Finsec's Stock Call Upgraded to 'Hold'

Smart Finsec, a microcap finance company, has recently caught the attention of investors as its stock call has been upgraded to 'Hold' by MarketsMOJO on November 10, 2023. This upgrade comes after the company declared positive results in September 2023, following three consecutive negative quarters.
The company's PBDIT(Q) has reached its highest at Rs 2.08 crore, while PBT LESS OI(Q) and PAT(Q) have also shown significant improvement at Rs 2.07 crore and Rs 1.59 crore respectively. This positive trend has also been reflected in the stock's technical analysis, with it being in a bullish range and generating -5.36% returns since the upgrade.

Smart Finsec's technical factors, such as MACD and KST, are also showing bullish signals. With a ROE of 19.8, the stock is currently trading at an attractive valuation with a price to book value of 2.3. However, it is important to note that the stock is currently trading at a premium compared to its average historical valuations.

In the past year, Smart Finsec has not only generated a return of 18.60%, but its profits have also increased by 96.7%. This has resulted in a low PEG ratio of 0.1, indicating a potential undervaluation of the stock.

It is worth mentioning that the majority shareholders of Smart Finsec are its promoters, which can be seen as a positive sign for the company's stability and growth potential. In the long term, the stock has also shown market-beating performance, outperforming BSE 500 in the last 3 years, 1 year, and 3 months.

However, it is important to note that Smart Finsec's long-term fundamental strength is weak, with an average ROE of 11.63%. This may be a cause for concern for some investors, but the recent positive results and technical analysis suggest a potential turnaround for the company. Overall, MarketsMOJO's upgrade to 'Hold' for Smart Finsec's stock call is a positive development for the company and its investors.