MarketsMOJO Upgrades PMC Fincorp to 'Hold' Based on Positive Performance and Attractive Valuation

MarketsMOJO has recently upgraded its stock call on PMC Fincorp to 'Hold' on 2024-04-02. This decision is based on the company's positive performance in the last 5 consecutive quarters. The company's net sales for the half year have grown at a rate of 20.09%, with the highest PAT (profit after tax) of Rs 2.94 crore and EPS (earnings per share) of Rs 0.06.

Technically, the stock is currently in a Mildly Bullish range, with the trend improving from Mildly Bearish on 01-Apr-24. Since then, the stock has generated a return of 8%. One of the key technical factors, Bollinger Band, has been Bullish since 01 Apr 2024.

Attractive valuation is another factor contributing to the 'Hold' call. With a ROE (return on equity) of 8.6, the stock is trading at a discount compared to its average historical valuations. In the past year, while the stock has generated a return of 39.18%, its profits have risen by 201.5%. The PEG (price/earnings to growth) ratio of the company is 0.1, indicating a potential for growth.

The majority shareholders of PMC Fincorp are Non-Institutional investors. However, the company has weak long-term fundamental strength, with an average ROE of 2.10%. The operating profit has also shown poor growth, with an annual rate of -206.27%.

Overall, MarketsMOJO's 'Hold' call on PMC Fincorp is based on its recent positive performance and attractive valuation. However, the company's weak long-term fundamentals and growth rate should also be considered by investors.