Tilak Ventures Receives 'Hold' Rating from MarketsMOJO, Shows Positive Results in Short Term

Tilak Ventures, a microcap finance company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes as the company has shown positive results for the last five consecutive quarters. In the last nine months, the company's net sales have increased to Rs 9.34 crore and its PAT has also seen a rise to Rs 3.11 crore. Additionally, the PBDIT for the quarter has reached its highest at Rs 0.94 crore.
Technically, the stock is currently in a mildly bullish range and the trend has improved from sideways to bullish on 13 May 2024. One key technical factor, the KST, has also been bullish since 13 May 2024. With an ROE of 5.7, the stock is currently trading at an attractive valuation with a price to book value of 1.4. It is also trading at a discount compared to its average historical valuations. Over the past year, the stock has generated a return of 33.99%, while its profits have risen by 303.9%. The PEG ratio of the company is 0.1, indicating a potential undervaluation.

However, the company does have some weak long-term fundamental strength, with an average ROE of 1.96%. Its net sales have also only grown at an annual rate of 48.17%, indicating poor long-term growth potential.

In addition, there has been a decrease in promoter confidence as they have reduced their stake in the company by -2.64% over the previous quarter. Currently, promoters hold 52.98% of the company, and this decrease in stake may signify reduced confidence in the future of the business.

Overall, while Tilak Ventures has shown positive results in the short term, it may be wise for investors to hold off on making any major decisions until there is more clarity on the company's long-term growth potential and promoter confidence.