MarketsMOJO upgrades Meghna Infracon Infrastructure to 'Hold' based on strong fundamentals and bullish technical trends

Meghna Infracon Infrastructure, a microcap company in the finance/NBFC industry, has recently received a 'Hold' rating from MarketsMOJO on November 28, 2024. This upgrade is based on the company's strong long-term fundamental strength, with an average return on equity (ROE) of 15.22%.
The stock is currently in a bullish range, with technical trends showing improvement from mildly bullish on November 28, 2024. Multiple factors, such as MACD, Bollinger Band, DOW, and OBV, are also indicating a bullish outlook for the stock.

In addition, Meghna Infracon Infrastructure has consistently generated positive returns over the last three years, outperforming the BSE 500 index. However, the company recently declared negative results in September 2024 after four consecutive positive quarters. The net sales for the half-year have decreased by 84.81%, while the PBT and PAT have also fallen significantly.

Despite these recent negative results, the company's ROE of 19.1 indicates a very expensive valuation with a price to book value of 47. This is further supported by the fact that while the stock has generated a return of 181.70% in the past year, its profits have only risen by 261%. The PEG ratio of the company is also at 0.9, suggesting that the stock may be overvalued.

It is worth noting that despite its size, domestic mutual funds hold only 0% of the company. This could indicate that they are not comfortable with the current price or the business, as domestic mutual funds have the capability to conduct in-depth research on companies.

Overall, while Meghna Infracon Infrastructure has shown strong long-term fundamental strength and a bullish technical outlook, the recent negative results and expensive valuation may warrant a 'Hold' rating for now. Investors should keep an eye on the company's future performance and any changes in the stock's technical trends.