Zee Learn Receives 'Hold' Rating from MarketsMOJO, Shows Positive Financial Results in Recent Quarters

Zee Learn, a microcap company in the educational institutions industry, has recently received a 'Hold' rating from MarketsMOJO on September 17, 2024. This upgrade is based on the company's positive financial results for the last three consecutive quarters.
In the last quarter, Zee Learn's PBT LESS OI(Q) has grown by an impressive 631.15%, while its PAT(HY) has also increased to Rs 44.37 crore. Additionally, the company's ROCE(HY) has reached its highest level at 17.39%. These factors have contributed to the company's technical trend, which has improved from Mildly Bullish to Bullish on September 16, 2024. Since then, the stock has generated a return of 2.54%.

Furthermore, Zee Learn's Bollinger Band and KST technical factors are also showing a Bullish trend. However, with a ROCE of 13.9, the stock is currently trading at a premium compared to its average historical valuations. In the past year, the stock has generated a return of 74.46%, while its profits have risen by 125.7%. This has resulted in a low PEG ratio of 0.1, indicating a market-beating performance.

On the other hand, Zee Learn's long-term fundamental strength is weak, with a -159.51% CAGR growth in Operating Profits over the last 5 years. The company also has a high Debt to EBITDA ratio of 5.52 times, indicating a low ability to service debt. Additionally, the company's Return on Equity (avg) is at 8.25%, signifying low profitability per unit of shareholders' funds.

Moreover, 29.16% of Promoter Shares are pledged, which can put additional downward pressure on the stock prices in falling markets. Overall, while Zee Learn has shown positive financial results in recent quarters, its long-term fundamental strength and high promoter pledged shares should be considered before making any investment decisions.