Mercantile Ventures Receives 'Hold' Rating from MarketsMOJO After Positive Performance

Mercantile Ventures, a microcap finance company, has recently received a 'Hold' rating from MarketsMOJO on February 12, 2024. This upgrade comes after the company reported positive results in December 2023, with a 95.5% growth in PAT(Q) at Rs 4.79 crore and the highest NET SALES(Q) at Rs 16.13 crore. Additionally, PBDIT(Q) also saw a significant increase at Rs 0.99 crore.
The stock is currently in a bullish range, with technical trends showing improvement from mildly bullish on February 12, 2024. The MACD and KST technical factors also indicate a bullish trend. The majority shareholders of Mercantile Ventures are its promoters.

In terms of performance, the stock has outperformed BSE 500 in the last 3 years, 1 year, and 3 months, with a return of 49.51% in the last year. However, the company's long-term fundamental strength is weak, with an average ROE of 4.83% and a poor growth rate of -1.45% in operating profit. Its current ROE of 0.2 also indicates a very expensive valuation, with a price to book value of 0.9.

Despite its recent positive performance, the stock is trading at a premium compared to its historical valuations. In the past year, while the stock has generated a return of 49.51%, its profits have declined by -93.6%. As such, MarketsMOJO has upgraded the stock to a 'Hold' rating, suggesting a neutral stance for investors.