Vertex Securities Receives Upgraded Stock Call from MarketsMOJO, Showing Positive Growth in 2024

Vertex Securities, a microcap finance and NBFC company, has recently received an upgraded stock call from MarketsMOJO. The stock has been upgraded to 'Hold' on October 11, 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 an impressive 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 October 11, 2024. This is due to multiple factors such as MACD, Bollinger Band, and KST.

The majority shareholders of Vertex Securities are its promoters, which is a positive sign for investors. The company has also consistently generated returns over the last 3 years, outperforming the BSE 500 index in each of the last 3 annual periods. However, the company's long-term fundamental strength is weak with an average return on equity (ROE) of 3.02%. Its operating profit has only grown at an annual rate of 10.26%, indicating poor long-term growth.

Furthermore, the stock has a very expensive valuation with a price to book value of 4.6 and an ROE of 4.9. However, it is currently trading at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 68.57%, while its profits have risen by 174%. This gives the company a PEG ratio of 0.2, which is considered to be undervalued.

In conclusion, while Vertex Securities has shown positive growth in the first half of 2024 and has consistently generated returns, its long-term fundamental strength and valuation may be a cause for concern. Investors are advised to hold onto their stocks for now and keep an eye on the company's future performance.