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 October 9, 2024. This upgrade is based on the company's strong financial performance in the last quarter, with PBDIT(Q), PBT LESS OI(Q), and PAT(Q) reaching their highest levels at Rs 2.10 cr, Rs 2.11 cr, and Rs 1.75 cr respectively.
Technically, the stock is currently in a Mildly Bullish range and has shown improvement from a Sideways trend on October 9, 2024. The Bollinger Band and KST technical factors also indicate a Bullish trend for the stock.

With a ROE of 23.2, Step Two Corporation is currently trading at an attractive valuation with a Price to Book Value of 2.9. It is also trading at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 78.14%, while its profits have increased by 68%. This results in a low PEG ratio of 0.1, indicating a potential undervaluation of the stock.

The majority shareholders of Step Two Corporation are the promoters, which can be seen as a positive sign for investors. The company has also shown market-beating performance in the long term, outperforming BSE 500 in the last 3 years, 1 year, and 3 months.

However, the company's long term fundamental strength is weak, with an average ROE of 3.49%. Its operating profit has only grown at an annual rate of 20.11%, indicating poor long term growth.

Overall, while Step Two Corporation has shown strong financial performance in the last quarter and has potential for growth in the near term, its long term fundamentals may be a cause for concern. Investors should carefully consider these factors before making any investment decisions.