Standard Capital Markets Receives 'Hold' Rating After Strong Financial Performance

Standard Capital Markets, a microcap finance company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes after the company reported very positive results in December 2023, with a growth in operating profit of 53.5%. This marks the third consecutive quarter of positive results for the company.
The company's net sales for the half year have also seen a significant growth of 163.97%, reaching Rs 11.43 crore. Additionally, its profit after tax for the quarter was at its highest at Rs 3.63 crore. These strong financials have contributed to the stock's technical trend, which has improved from sideways to mildly bullish on 26 March 2024.

One key technical factor that has contributed to this upgrade is the bullish MACD trend since 26 March 2024. Furthermore, with a return on equity of 6.4, the stock is currently trading at a fair valuation with a price to book value of 1.7. It is also trading at a discount compared to its average historical valuations.

Over the past year, the stock has generated a return of 20.16%, while its profits have risen by a staggering 920%. This has resulted in a PEG ratio of 0.8 for the company, indicating a potential undervaluation.

However, despite these positive indicators, the company has a weak long-term fundamental strength with an average return on equity of 1.39%. It has also underperformed the market in the last year, with a return of 20.16% compared to the BSE 500 index's return of 39.26%.

In conclusion, while Standard Capital Markets has shown strong financial performance in the recent past, it is important to consider its weak long-term fundamentals and underperformance in the market before making any investment decisions. Investors are advised to do their own research and consult with a financial advisor before making any decisions.