Assam Entrade Receives 'Hold' Rating Upgrade from MarketsMOJO Based on Strong Financial Performance

Assam Entrade, a microcap finance company, has recently received an upgrade to a 'Hold' rating by MarketsMOJO on November 18, 2024. This upgrade is based on the company's positive results in September 2024, with the highest operating cash flow of Rs 2.03 crore and a 20.49% growth in net sales for the first nine months of the year. Additionally, the company's quarterly net profit has also seen a significant increase, reaching Rs 1.72 crore.
Technically, the stock is currently in a mildly bullish range, with an improved trend since November 8, 2024, resulting in a return of -1.21%. The Bollinger Band and KST technical factors also indicate a bullish trend for the stock.

Attractive valuation is another factor contributing to the 'Hold' rating, with a price to book value of 1 and the stock trading at a discount compared to its historical valuations. In the past year, the stock has generated a return of 66.06%, while its profits have increased by 141.1%. The PEG ratio of the company is also at a low 0.2.

The majority shareholders of Assam Entrade are the promoters, indicating their confidence in the company's performance. The stock has also outperformed the market (BSE 500) with a return of 66.06% in the last year, compared to the market's 23.90% return.

However, the company does have some weak long-term fundamental strength, with operating losses and poor growth in net sales and operating profit. Net sales have only grown at an annual rate of 5.24%, while the operating profit is at -14.35%.

Overall, with its recent positive results and attractive valuation, Assam Entrade is a stock worth considering for a 'Hold' position in one's portfolio.