Sonal Mercantile's Stock Upgraded to 'Hold' by MarketsMOJO After Positive Results and Strong 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 19th August 2024. This upgrade comes as the company has declared positive results for the last 7 consecutive quarters, with the highest PAT(Q) at Rs 7.73 crore and EPS(Q) at Rs 5.24.
Technically, the stock is in a mildly bullish range and the trend has improved from sideways on 19th August 2024. A key technical factor, MACD, has also been bullish since the same date. With a ROE of 7.7, the company has an attractive valuation with a price to book value of 0.5. However, the stock is currently trading at a premium compared to its average historical valuations.

Over the past year, Sonal Mercantile's stock has generated a return of 43.28%, while its profits have risen by 44.2%. This gives the company a PEG ratio of 0.1, indicating a strong performance. The majority shareholders of the company are non-institutional investors.

Sonal Mercantile has consistently delivered strong returns over the last 3 years, outperforming the BSE 500 index in each of the last 3 annual periods. However, the company has a weak long-term fundamental strength with an average ROE of 5.81%. Despite this, the company's stock has shown promising growth and potential for investors.