Capital Trust Receives Upgraded Stock Call from MarketsMOJO, Declares Positive Results for Four Consecutive Quarters

Capital Trust, a microcap finance company, has recently received an upgraded stock call from MarketsMOJO. The company's stock has been upgraded to 'Hold' on 2024-07-22. This upgrade comes as the company has declared positive results for the last four consecutive quarters, with its PAT(Q) reaching a high of Rs 2.02 crore, PBT LESS OI(Q) at Rs 2.56 crore, and EPS(Q) at Rs 1.25.
In addition, the stock is currently in a bullish range and its technical trend has improved from mildly bullish to bullish on 19-Jul-24. This can be attributed to multiple factors such as MACD, Bollinger Band, KST, and OBV.

The majority shareholders of Capital Trust are its promoters, indicating their confidence in the company's performance. However, the company does have weak long-term fundamental strength with an average ROE of 7.74%. Its net sales have also shown a negative growth rate of -15.53% and operating profit at -185.42%.

Furthermore, with a ROE of 5.3, the company's valuation is considered very expensive with a 1.7 price to book value. However, the stock is currently trading at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 41.36%, while its profits have risen by 104.4%. This gives the company a PEG ratio of 0.3, indicating a potential undervaluation.

Overall, while Capital Trust may have some weaknesses in its long-term fundamentals, its recent positive results and bullish technical trend make it a hold for now. Investors should keep an eye on the company's performance and valuation in the future.