Step Two Corporation Receives 'Hold' Rating from MarketsMOJO, Shows Strong Financial Performance

Step Two Corporation, a microcap company in the finance/NBFC industry, has recently received a 'Hold' rating from MarketsMOJO on November 5, 2024. This upgrade is based on the company's strong financial performance in the last quarter.
According to the latest financial report, Step Two Corporation's PBDIT(Q) has reached a record high of Rs 2.10 crore, while PBT LESS OI(Q) and PAT(Q) have also shown significant growth, reaching Rs 2.11 crore and Rs 1.75 crore respectively. This indicates a positive trend in the company's profitability.

In addition, the stock is currently in a Mildly Bullish range and the technical trend has improved from Sideways on November 5, 2024. The Bollinger Band and KST technical factors are also Bullish, further supporting the 'Hold' rating.

With a ROE of 23.2, Step Two Corporation is currently trading at a Very Attractive valuation with a 2.7 Price to Book Value. This means that the stock is trading at a discount compared to its average historical valuations. Moreover, in the past year, the stock has outperformed the market (BSE 500) with a return of 67.24%, while its profits have also increased by 68%. The PEG ratio of the company is 0.1, indicating a strong potential for future growth.

It is worth noting that the majority shareholders of Step Two Corporation are the promoters, which can be seen as a positive sign for investors. The company has a track record of market-beating performance, with a return of 67.24% in the last year, compared to the market's return of 32.67%.

However, the company's long-term fundamental strength is weak, with an average ROE of 3.49%. The operating profit has also shown poor growth, increasing at an annual rate of only 20.11%. This may be a cause for concern for long-term investors.

In conclusion, while Step Two Corporation has shown strong financial performance in the last quarter and has a potential for future growth, its long-term fundamental strength is weak. Investors are advised to carefully consider these factors before making any investment decisions.