BFL Asset Finvest Receives 'Hold' Rating from MarketsMOJO After Strong Financial Results

BFL Asset Finvest, a microcap company in the construction and real estate industry, has recently received a 'Hold' rating from MarketsMOJO on September 9th, 2024. This upgrade comes after the company reported very positive results in June 2024, with a growth in net sales of 586.36%. The company's net sales for the half-year period were at Rs 10.38 crore, showing a significant increase of 1,197.50%. Additionally, the company's PBDIT (quarterly) and PBT less OI (quarterly) were at their highest levels at Rs 5.51 crore and Rs 5.46 crore respectively.
Technically, the stock is currently in a mildly bullish range, with the technical trend improving from sideways on September 9th, 2024. The MACD and KST technical factors also indicate a bullish trend for the stock.

Attractive valuation is another factor contributing to the 'Hold' rating. With a ROCE of 1.1 and an enterprise value to capital employed ratio of 1.3, the stock is trading at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 41.48%, while its profits have increased by 710%.

The majority shareholders of BFL Asset Finvest are non-institutional investors. However, the company's long-term fundamental strength is weak, with a CAGR growth in operating profits of only 13.06% over the last 5 years. Additionally, the company's ability to service its debt is also weak, with a poor EBIT to interest ratio of 1.33.

Overall, BFL Asset Finvest's recent 'Hold' rating from MarketsMOJO is based on its positive financial results and technical indicators. However, investors should also consider the company's weak long-term fundamental strength and debt-servicing ability before making any investment decisions.