Vertex Securities Receives 'Hold' Upgrade from MarketsMOJO, Shows Positive Growth in 2024

Vertex Securities, a microcap company in the finance/NBFC industry, has recently received an upgraded stock call from MarketsMOJO. The stock has been upgraded to 'Hold' on November 7, 2024.
The decision to upgrade the stock to 'Hold' is based on positive results in the first half of 2024. The company's net sales have grown by 85.81% to reach Rs 5.37 crore, while its profits after tax have also increased to Rs 0.78 crore. Additionally, the stock is currently in a bullish range and the technical trend has improved from mildly bullish to bullish on November 7, 2024. This is supported by factors such as MACD, Bollinger Band, and KST.

The majority shareholders of Vertex Securities are the promoters, which can be seen as a positive sign for the company. Moreover, the stock has consistently outperformed BSE 500 in the last 3 annual periods, with a return of 96.88% in the last year alone.

However, the company's long-term fundamental strength is weak, with an average return on equity (ROE) of 3.02%. This indicates poor long-term growth, as the operating profit has only grown at an annual rate of 10.26%. Additionally, the stock has a very expensive valuation with a price to book value of 4.9. However, it is currently trading at a discount compared to its average historical valuations.

Despite the stock's impressive return of 96.88% in the last year, its profits have only risen by 174%. This results in a low PEG ratio of 0.2, indicating that the stock may be undervalued.

In conclusion, while Vertex Securities has shown positive growth in the first half of 2024 and is currently in a bullish range, its long-term fundamental strength and valuation may be a cause for concern. Investors are advised to hold the stock for now and monitor its performance closely.