Supra Pacific Management Consultancy Receives 'Hold' Rating from MarketsMOJO Amidst Positive Short-Term Results

Supra Pacific Management Consultancy, a microcap company in the finance/NBFC industry, has recently received a 'Hold' rating from MarketsMOJO on April 1, 2024. This upgrade comes as the company has shown positive results for the last five consecutive quarters, with a significant growth in net sales of 113.01% at Rs 13.10 crore. Additionally, its PBDIT (profit before depreciation, interest, and taxes) and PBT (profit before tax) have also reached their highest levels at Rs 3.88 crore and Rs 0.65 crore respectively.
Technically, the stock is currently in a bullish range and has shown improvement from a mildly bullish trend on April 1, 2024. This can be attributed to multiple factors such as MACD, Bollinger Band, and KST. In terms of performance, Supra Pacific Management Consultancy has outperformed the market (BSE 500) with a return of 55.75% in the last year, compared to the market's return of 39.87%.

However, the company's long-term fundamental strength is weak, with an average return on equity (ROE) of 3.20%. Its current ROE of 2 indicates a very expensive valuation, with a price to book value of 3.6. This is higher than its average historical valuations. Despite the impressive return in the past year, the company's profits have only risen by 25%.

In conclusion, while Supra Pacific Management Consultancy has shown positive results and a bullish trend in the short term, its weak long-term fundamental strength and expensive valuation may warrant a 'Hold' rating from MarketsMOJO. Investors should carefully consider these factors before making any investment decisions.