Ujjivan Financial Services: Strong Fundamentals and Growth

Ujjivan Financial Services, a midcap finance company, has recently been downgraded to a 'Hold' by MarketsMOJO on December 26, 2023. This decision was based on the company's strong long-term fundamental strength, with a 37.44% CAGR growth in operating profits.
The company has shown consistent positive results for the past 7 quarters, with its net sales and PBDIT reaching their highest levels at Rs 1,496.22 crore and Rs 965.96 crore respectively. This indicates a healthy long-term growth for the company.

Technically, the stock is currently in a mildly bullish range, with multiple factors such as MACD, Bollinger Band, KST, and DOW being bullish. Additionally, with a ROE of 22.9 and an attractive valuation of 1.9 price to book value, the stock is trading at a discount compared to its historical valuations.

In the past year, the stock has generated a return of 129.10%, while its profits have risen by 84.8%. This gives the company a PEG ratio of 0.1, indicating a potential undervaluation.

Furthermore, Ujjivan Financial Services has a high institutional holding of 42.5%, which suggests that these investors have better capabilities and resources to analyze the company's fundamentals compared to retail investors.

Overall, the stock has shown market-beating performance in both the long-term and near-term, outperforming BSE 500 in the last 3 years, 1 year, and 3 months. While the stock may currently be a 'Hold', it is still a strong contender for potential growth in the future.