Tilak Ventures Receives 'Hold' Rating After Strong Financial Performance and Attractive Valuation

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%. This marks the eighth consecutive quarter of positive results for the company.
One of the key factors contributing to the 'Hold' rating is the company's strong financial performance. The company's profits have grown at an impressive rate of 119.77%, with the highest net sales of Rs 9.38 crore and EPS of Rs 0.09 in the last quarter. Additionally, the stock is currently in a mildly bullish range and the technical trend has improved from sideways to bullish.

Moreover, Tilak Ventures has a very attractive valuation with a price to book value of 1.8 and a return on equity (ROE) of 8.9%. The stock is also trading at a discount compared to its historical valuations. In the past year, the stock has generated a return of 18.25%, while its profits have risen by 72.1%. This indicates a PEG ratio of 0.9, which is considered favorable for investors.

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. This may be a cause for concern for some investors.

Overall, with its recent positive financial performance and attractive valuation, Tilak Ventures may be a good stock to hold in one's portfolio. However, investors should also consider the company's weak long-term fundamentals before making any investment decisions.