HB Portfolio receives upgraded stock call from MarketsMOJO, shows positive results in December 2023

HB Portfolio, a microcap finance company, has recently received an upgraded stock call from MarketsMOJO. The stock has been upgraded to 'Hold' on 2024-02-16 due to positive results in December 2023. The company's profit after tax for the half year has increased to Rs 4.53 crore, while its net sales for the quarter have grown by 44.4% to Rs 5.98 crore. Additionally, the company's cash and cash equivalents for the half year are at a record high of Rs 16.28 crore.
Technically, the stock is currently in a bullish range and has shown a positive trend since February 14, 2024, generating a return of 4.81%. Multiple factors such as MACD, Bollinger Band, and KST indicate a bullish outlook for the stock.

The majority shareholders of HB Portfolio are its promoters, which adds to the company's stability and growth potential. The stock has consistently outperformed BSE 500 in the last 3 annual periods, with a return of 100.81% in the last year alone.

However, the company's long-term fundamental strength is weak, with an average return on equity (ROE) of 1.76%. Its current ROE of 1.1 indicates a very expensive valuation with a price to book value of 0.4. The stock is currently trading at a premium compared to its historical valuations. Despite its impressive return in the past year, the company's profits have declined by -59.2%.

In conclusion, while HB Portfolio's recent performance has been positive, its long-term fundamental strength and valuation may be a cause for concern. Investors are advised to hold the stock for now and monitor its performance closely.