BLB Receives Upgraded Stock Call from MarketsMOJO, Shows Strong Net Sales Growth

BLB, a microcap finance company, has recently received an upgraded stock call from MarketsMOJO. The company's net sales have shown a growth of 14.95%, leading to outstanding results in the quarter ending June 2024. With the highest net sales of Rs 236.05 crore, PBDIT of Rs 12.29 crore, and PBT LESS OI of Rs 12.01 crore, BLB has proven to be a strong player in the finance/NBFC industry.
However, the technical trend for BLB is currently sideways, indicating no clear price momentum. Although it has improved from being mildly bearish on 20-Aug-24, the stock has only generated a return of 4.97% since then. Additionally, with a ROE of 9.4 and a price to book value of 1.1, the stock is currently trading at a fair value compared to its historical valuations.

On the other hand, BLB's long-term fundamental strength is weak, with an average ROE of 3.93% and poor growth in net sales at an annual rate of 31.96%. Furthermore, institutional investors have decreased their stake in the company by -1.38% over the previous quarter, holding only 0% collectively. This indicates that these investors, who have better resources and capabilities to analyze company fundamentals, have lost interest in BLB.

In the last year, BLB has underperformed the market, generating a return of only 2.86% compared to the market's (BSE 500) return of 38.30%. While the company's profits have increased by 39.1%, the PEG ratio of 0.3 suggests that the stock is currently overvalued. With these factors in mind, MarketsMOJO has upgraded the stock call for BLB to 'Hold'.