Vertex Securities Receives 'Hold' Rating from MarketsMOJO After Strong Quarterly Results

Vertex Securities, a microcap finance and NBFC company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes after the company has shown positive results for the last three consecutive quarters. In the first half of the current financial year, the company's net sales have grown by an impressive 45.53% to reach Rs 5.21 crore, while its profits after tax for the first nine months have also increased to Rs 0.97 crore.
The stock is currently in a bullish range and its technical trend has improved from mildly bullish to bullish on 25-Nov-24. This is due to multiple factors such as MACD, Bollinger Band, and KST. The majority shareholders of Vertex Securities are its promoters, indicating their confidence in the company's performance.

Over the last three years, the stock has consistently outperformed the BSE 500 index and has generated a return of 77.06% in the last year alone. However, the company's long-term fundamental strength is weak, with an average return on equity (ROE) of only 2.52%. Its operating profit has also shown poor growth at an annual rate of -14.73%.

Despite its expensive valuation with a price to book value of 4.5 and a ROE of 10.4, the stock is currently trading at a discount compared to its average historical valuations. In the past year, while the stock has generated a return of 77.06%, its profits have risen by 198%, resulting in a low PEG ratio of 0.2.

Overall, MarketsMOJO's 'Hold' rating on Vertex Securities is based on its recent positive performance and bullish technical trend, but investors should also consider the company's weak long-term fundamental strength before making any investment decisions.