Systematix Corporate Services Receives 'Buy' Rating, Shows Impressive Growth in Profits and Sales

Systematix Corporate Services, a smallcap company in the finance/NBFC industry, has recently received a 'Buy' rating from MarketsMOJO. This upgrade is based on the company's strong long-term fundamental strength, with a remarkable 46.98% CAGR growth in operating profits.
The company has also shown consistent growth in net sales, with a 10.02% increase, and has declared outstanding results for the last three consecutive quarters. In fact, its profits have grown by a staggering 787.38% in the half-yearly period and 185.9% in the quarter. With a higher net sales of Rs 100.85 crore, the company is on a positive growth trajectory.

From a technical standpoint, the stock is currently in a bullish range and has shown improvement since June 7, 2024. Multiple factors, such as MACD, Bollinger Band, and KST, indicate a bullish trend for the stock.

In terms of market performance, Systematix Corporate Services has outperformed the market (BSE 500) with a return of 277.16% in the last year, compared to the market's 35.28% return.

However, there are some risks associated with investing in this company. With a ROE of 35, the stock is currently trading at a very expensive valuation, with a price to book value of 7.5. It is also trading at a discount compared to its historical valuations. Additionally, while the stock has shown impressive returns, its profits have risen by 950.2%, resulting in a PEG ratio of 0.

Another risk factor is that despite being a smallcap company, domestic mutual funds hold only 0% of the company. This could indicate that they are not comfortable with the current price or the business itself, as they have the capability to conduct in-depth research on companies.

In conclusion, Systematix Corporate Services is a promising smallcap company in the finance/NBFC industry, with strong fundamental strength and a bullish trend. However, investors should carefully consider the risks associated with the stock before making any investment decisions.