Tracxn Technologies Receives 'Hold' Rating from MarketsMOJO, Despite Strong Management Efficiency and Growth

Tracxn Technologies, a microcap IT software company, has recently received a 'Hold' rating from MarketsMOJO on May 21, 2024. This upgrade is based on the company's high management efficiency, with a ROE of 27.72%. Additionally, Tracxn Technologies has a low Debt to Equity ratio, indicating a strong financial position.
The company has also shown healthy long-term growth, with an annual operating profit growth rate of 216.02%. Technically, the stock is currently in a Mildly Bullish range, with the trend improving from Sideways on May 18, 2024. The key technical factor, OBV, has also been Mildly Bullish since May 18, 2024.

However, Tracxn Technologies did report negative results in March 2024, with a decline in PAT (HY) at Rs 3.65 crore, a decrease of 88.11%. Additionally, NON-OPERATING INCOME (Q) accounted for 66.67% of the company's Profit Before Tax (PBT).

The company's ROE of 45.8 indicates a very expensive valuation, with a Price to Book Value of 15.2. The stock is currently trading at a premium compared to its average historical valuations. Despite generating a return of 43.28% in the past year, the company's profits have only risen by 2896%.

Moreover, there has been a decrease in participation by institutional investors, with a decrease of -7.66% in their stake over the previous quarter. Currently, institutional investors hold 9.07% of the company, and their analysis of the company's fundamentals may be more thorough than that of retail investors.

Overall, while Tracxn Technologies has shown strong management efficiency and long-term growth, the negative results in March 2024 and expensive valuation may be a cause for concern. Investors may want to hold off on investing in this microcap IT software company until there is more stability in its financial performance.