Sonal Mercantile Receives 'Hold' Stock Upgrade from MarketsMOJO Based on Strong Financial Performance.

Sonal Mercantile, a microcap finance company, has recently received an upgraded stock call from MarketsMOJO. The company's stock has been upgraded to 'Hold' on 2024-09-02.
The decision to upgrade the stock to 'Hold' is based on the company's positive financial performance in the last 7 consecutive quarters. Sonal Mercantile has reported a PAT (Q) of Rs 7.73 crore, which is the highest in the last 7 quarters. Similarly, the company's EPS (Q) has also reached its highest at Rs 5.24.

Technically, the stock is currently in a Mildly Bullish range, with an improved trend from Sideways on 02-Sep-24. The Bollinger Band and DOW technical factors also indicate a Mildly Bullish trend for the stock.

In terms of valuation, Sonal Mercantile has an attractive ROE of 7.7 and a price to book value of 0.5. The stock is currently trading at a fair value compared to its average historical valuations. Additionally, in the past year, the stock has generated a return of 22.39%, while its profits have increased by 44.2%. This results in a low PEG ratio of 0.1 for the company.

It is worth noting that the majority of the company's shareholders are non-institutional investors. However, Sonal Mercantile has weak long-term fundamental strength, with an average ROE of 5.81%. This has led to the stock underperforming in the market in the last year, with a return of 22.39%, compared to the market (BSE 500) return of 38.49%.

Overall, with its positive financial performance and fair valuation, Sonal Mercantile's stock has been upgraded to 'Hold' by MarketsMOJO. However, investors should also consider the weak long-term fundamental strength of the company before making any investment decisions.