Supra Pacific Management Consultancy Receives 'Hold' Rating from MarketsMOJO Amid Positive Results and Bullish Sentiment

Supra Pacific Management Consultancy, a microcap company in the finance/NBFC industry, has recently received a 'Hold' rating from MarketsMOJO on June 19, 2024. This upgrade comes as the company has shown positive results for the last six consecutive quarters, with a significant growth in net sales and profits.
In the half-yearly results, the company's net sales have grown by an impressive 113.65%, reaching Rs 15.81 crore. The PBDIT (profit before depreciation, interest, and taxes) for the quarter has also reached its highest at Rs 4.24 crore, while the PAT (profit after tax) has also seen a significant increase, reaching Rs 0.46 crore.

Technically, the stock is currently in a bullish range, with its technical trend improving from mildly bullish on June 19, 2024. Multiple factors, such as MACD, Bollinger Band, KST, and OBV, indicate a bullish sentiment for the stock.

The majority shareholders of Supra Pacific Management Consultancy are non-institutional investors, and the stock has shown a market-beating performance, generating a return of 65.40% in the last year, compared to the market (BSE 500) returns of 36.98%.

However, the company's long-term fundamental strength is weak, with an average ROE (return on equity) of 3.20%. Its current ROE of 1.3 indicates a very expensive valuation, with a price to book value of 1.6. The stock is currently trading at a premium compared to its historical valuations.

Despite its impressive stock performance in the past year, the company's profits have only risen by 42%, resulting in a high PEG (price/earnings to growth) ratio of 6.4. This suggests that the stock may be overvalued and investors should exercise caution.

In conclusion, while Supra Pacific Management Consultancy has shown positive results and a bullish sentiment in the short term, its weak long-term fundamentals and expensive valuation may warrant a 'Hold' rating for now. Investors should keep an eye on the company's future performance before making any investment decisions.