ISL Consulting Receives 'Hold' Rating After Strong Financial Performance

ISL Consulting, a microcap company in the finance/NBFC industry, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes after the company declared positive results for the last three consecutive quarters, with a growth of 39.59% in net sales and a higher PAT of Rs 3.20 crore. The PBDIT for the last quarter was also at its highest at Rs 1.68 crore.
Technically, the stock is in a bullish range and the trend has improved from mildly bullish on 29-Apr-24. Multiple factors such as MACD, Bollinger Band, KST, DOW, and OBV are also bullish for the stock.

The majority shareholders of ISL Consulting are the promoters, indicating their confidence in the company's performance. However, the company has weak long-term fundamental strength with an average ROE of 2.62%. The net sales have also shown poor growth at an annual rate of -27.88%, and the operating profit has decreased by -5.59%.

The stock is currently trading at a very expensive valuation with a price to book value of 5.2. However, it is still at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 20.95%, while its profits have risen by 401%. This gives the company a PEG ratio of 0.1, indicating a potential for future growth.

Despite underperforming the market in the last year, with a return of 20.95% compared to the BSE 500's return of 36.89%, ISL Consulting's recent positive results and bullish technical indicators make it a stock to watch. Investors are advised to hold their positions and monitor the company's performance in the coming quarters.