South Indian Bank Receives 'Hold' Rating from MarketsMOJO, Shows Strong Long-Term Growth

South Indian Bank, a midcap private bank, has recently received a 'Hold' rating from MarketsMOJO. This upgrade is based on the company's healthy long-term growth, with a net profit growth rate of 31.17% annually. The bank has also declared positive results for the last 11 consecutive quarters, with its operating cash flow at a high of Rs 7,075.21 crore and credit deposit ratio at 77.93%.
With a ROA of 1, South Indian Bank has a very attractive valuation with a price to book value of 0.7. The stock is currently trading at a discount compared to its average historical valuations. However, over the past year, while the stock has generated a return of 3.98%, its profits have risen by 32.6%. This gives the company a PEG ratio of 0.4, indicating its potential for future growth.

Technically, the stock is currently in a mildly bearish range, with both its MACD and KST technical factors showing a bearish trend. Additionally, there has been a decrease in participation by institutional investors, with their stake decreasing by -1.29% over the previous quarter. However, these investors have better capabilities and resources to analyze the fundamentals of companies compared to most retail investors.

In the last year, South Indian Bank has underperformed the market, with a return of only 3.98% compared to the market's (BSE 500) return of 33.11%. This could be a cause for concern for investors, but with its positive long-term growth and attractive valuation, the stock is still considered a 'Hold' by MarketsMOJO.