Sugal & Damani Share Brokers Receives Upgraded Stock Call from MarketsMOJO

Sugal & Damani Share Brokers, a microcap company in the finance/NBFC industry, has recently received an upgraded stock call from MarketsMOJO. The stock has been upgraded to 'Hold' on 06-Nov-24 due to positive results in the Jun 24 quarter. The company has shown significant growth in its financials, with PBT LESS OI(Q) growing at 324.0%, PBDIT(Q) at its highest at Rs 1.66 cr, and PAT(Q) also at its highest at Rs 1.44 cr. The stock is currently in a bullish range and the technical trend has improved from mildly bullish on 06-Nov-24. This is supported by factors such as MACD, Bollinger Band, and KST. The majority shareholders of Sugal & Damani Share Brokers are the promoters, indicating their confidence in the company's performance. The stock has also outperformed the market (BSE 500) with a return of 197.93% in the last year, compared to the market's return of 33.50%. However, the company's long-term fundamental strength is weak with an average ROE of 6.96%. Its growth has also been poor, with net sales growing at an annual rate of 27.07% and operating profit at 12.82%. The stock is currently trading at an expensive valuation with a price to book value of 1.9, which is higher than its historical average. Despite its strong performance in the past year, the company's profits have only risen by 150.8%, resulting in a low PEG ratio of 0.1. This indicates that the stock may be trading at a premium compared to its historical valuations. In conclusion, while Sugal & Damani Share Brokers has shown positive growth and performance in the past year, its long-term fundamentals and valuation may be a cause for concern. Investors are advised to hold the stock for now and monitor its performance closely.