Inani Securities receives 'Hold' rating from MarketsMOJO after positive quarterly results

Inani Securities, a microcap finance and NBFC company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes after the company has shown positive results for the last three consecutive quarters. In the last nine months, the company's PAT has increased to Rs 1.42 crore, while its PBDIT for the quarter has reached its highest at Rs 0.15 crore. Additionally, the PBT LESS OI for the quarter has also seen a significant increase at Rs 0.01 crore.
Technically, the stock is currently in a mildly bullish range and has shown improvement from a sideways trend on 14-Nov-24. One key technical factor, the Bollinger Band, has been bullish since 14 Nov 2024. With a ROE of 6.9, the stock is currently trading at a very attractive valuation with a price to book value of 0.6. This is a discount compared to its average historical valuations. Despite generating a return of -2.07% in the past year, the company's profits have increased by 92%, resulting in a PEG ratio of 0.

The majority shareholders of Inani Securities are the promoters, indicating their confidence in the company. However, the company does have weak long-term fundamental strength with an average ROE of 2.15%. Its net sales have also shown poor growth at an annual rate of -1.35%. In the last year, the stock has underperformed the market (BSE 500) with negative returns of -2.07%, while the market has generated returns of 26.29%.

Overall, while Inani Securities has shown positive results in the recent quarters and has a bullish technical trend, its long-term fundamental strength and underperformance in the market may be a cause for concern. Investors are advised to hold onto their stocks for now and monitor the company's performance closely.