Jindal Capital Receives Upgraded Stock Call and Shows Positive Results in Q2 2024

Jindal Capital, a microcap finance company, has recently received an upgraded stock call from MarketsMOJO. The stock has been upgraded to 'Hold' on October 8th, 2024.
The company has shown positive results in the quarter ending June 2024, with its PBDIT(Q) reaching the highest at Rs 0.90 crore, PBT LESS OI(Q) at Rs 0.79 crore, and PAT(Q) also at Rs 0.79 crore. This has contributed to the stock's bullish trend, with technical indicators such as MACD, Bollinger Band, and KST all showing positive signs.

The majority shareholders of Jindal Capital are its promoters, which adds to the stability and confidence in the company. Additionally, the stock has consistently outperformed BSE 500 in the last 3 annual periods, with a return of 46.33% in the last year alone.

However, the company's long-term fundamental strength is weak, with an average ROE of 4.21%. Its net sales have also shown a negative growth rate of -18.53% annually. This, along with an expensive valuation of 14.6 ROE and a 4.1 price to book value, may be a cause for concern for some investors.

Despite this, the stock is currently trading at a discount compared to its historical valuations, making it an attractive option for those looking to invest in a microcap finance company. In the past year, while the stock has generated a return of 46.33%, its profits have risen by 131%, resulting in a PEG ratio of 0. This indicates that the stock may be undervalued and has potential for growth in the future.