DB (International) Stock Brokers Receives 'Hold' Rating After Strong Financial Results

DB (International) Stock Brokers, a microcap company in the finance/NBFC industry, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes after the company reported very positive results in December 2023, with a growth in net profit of 78.33%. The company's PAT (Q) has also seen a significant increase of 101.6%, while its net sales (Q) and PBDIT (Q) have reached their highest levels at Rs 13.23 crore and Rs 5.51 crore respectively.
Technically, the stock is currently in a bullish range and the technical trend has improved from mildly bullish to bullish on April 30, 2024. This is supported by multiple factors such as MACD, Bollinger Band, and KST. In the long term, the stock has also shown market-beating performance, generating 153.54% returns in the last year and outperforming BSE 500 in the last 3 years, 1 year, and 3 months.

However, the company's long-term fundamental strength is weak with an average Return on Equity (ROE) of 7.21%. Its current ROE of 10.4 also indicates a very expensive valuation with a 3.5 price to book value. This is further supported by the fact that the stock is trading at a premium compared to its average historical valuations. Additionally, while the stock has seen a significant return in the past year, its profits have actually decreased by -6.9%.

Investors should also take note that 50.34% of the promoter shares are pledged. In times of falling markets, this can put additional downward pressure on the stock prices. Therefore, it is important to carefully consider all factors before making any investment decisions regarding DB (International) Stock Brokers.