Ashirwad Capital's Stock Upgraded to 'Hold' by MarketsMOJO After Positive Results.

Ashirwad Capital, a microcap finance company, has recently caught the attention of investors as its stock call has been upgraded to 'Hold' by MarketsMOJO on April 8, 2024. This upgrade comes after the company reported positive results in December 2023, with its PAT(Q) reaching a record high of Rs 0.73 crore, PBDIT(Q) at Rs 0.78 crore, and PBT LESS OI(Q) at Rs 0.77 crore.
The stock is currently in a bullish range and the technical trend has improved from mildly bullish to bullish on April 8, 2024. This can be attributed to multiple factors such as MACD, Bollinger Band, and KST. With a ROE of 10.9, the stock is fairly valued with a price to book value of 2.7. However, it is trading at a premium compared to its average historical valuations.

Over the past year, Ashirwad Capital's stock has generated a return of 109.52%, outperforming the market (BSE 500) returns of 40.11%. This impressive performance can be attributed to increasing participation by institutional investors, who have increased their stake by 0.83% in the previous quarter and collectively hold 0.83% of the company. These investors have better capability and resources to analyze the fundamentals of companies compared to most retail investors.

Despite its market-beating performance, Ashirwad Capital has weak long-term fundamental strength with an average ROE of 6.41%. Its operating profit has only grown at an annual rate of 7.77%, indicating poor long-term growth. However, the company's profits have still risen by 65% in the past year, resulting in a low PEG ratio of 0.3.

In conclusion, while Ashirwad Capital's stock has shown impressive performance in the past year, its long-term fundamentals may be a cause for concern. Investors should carefully consider all factors before making any investment decisions.