Tilak Ventures Receives 'Hold' Rating After Impressive Growth in Profits

Tilak Ventures, a microcap finance company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes after the company reported very positive results in September 2024, with a growth in net sales of 82.7%. In fact, the company has consistently declared positive results for the last 8 quarters, showcasing its strong performance in the finance industry.
One of the key factors contributing to the 'Hold' rating is the company's impressive growth in profits. The company's PAT (HY) has grown by 119.77%, while its net sales (Q) reached a record high of Rs 9.38 crore. Additionally, the EPS (Q) also saw a significant increase, reaching Rs 0.09.

From a technical standpoint, the stock is currently in a mildly bullish range and has shown improvement since November 12, 2024. The KST (Know Sure Thing) indicator, a key technical factor, has been bullish since the same date.

Moreover, Tilak Ventures also has a very attractive valuation with a price to book value of 1.6 and a discount compared to its historical valuations. Despite generating a return of -0.25% in the past year, the company's profits have risen by 72.1%, resulting in a low PEG ratio of 0.7.

However, the company does have some weak long-term fundamental strengths, with an average ROE of 1.96% and a poor growth rate of -2.85% in net sales. It has also consistently underperformed against the benchmark BSE 500 index in the last 3 years, further contributing to the 'Hold' rating.

In conclusion, while Tilak Ventures has shown strong performance in the recent quarter, its long-term fundamentals and underperformance against the benchmark may be cause for concern. Investors are advised to hold onto their stocks for now and monitor the company's performance closely.