Supra Pacific Management Consultancy Receives 'Hold' Rating from MarketsMOJO, Shows Positive Results

Supra Pacific Management Consultancy, a microcap company in the finance/NBFC industry, has recently received a 'Hold' rating from MarketsMOJO on July 29, 2024. This upgrade comes as the company has shown positive results for the last six consecutive quarters.
In the half-yearly results, the company's net sales have grown by an impressive 113.65% to reach Rs 15.81 crore. Additionally, the PBDIT (profit before depreciation, interest, and taxes) for the quarter has reached its highest at Rs 4.24 crore, while the PAT (profit after tax) has also reached its highest at Rs 0.46 crore.

Technically, the stock is currently in a bullish range and has shown improvement since July 23, 2024, generating a return of 1.34%. Multiple factors, such as MACD, Bollinger Band, KST, and OBV, indicate a bullish trend for the stock.

In terms of market performance, Supra Pacific Management Consultancy has outperformed the market (BSE 500) with a return of 81.26% in the last year, compared to the market's 37.44% returns.

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 1.7. The stock is currently trading at a premium compared to its historical valuations.

Despite its impressive market performance, the company's profits have only risen by 42% in the past year, resulting in a high PEG (price/earnings to growth) ratio of 6.8. This suggests that the stock may be overvalued.

Overall, while Supra Pacific Management Consultancy has shown positive results and a bullish trend, 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.