Motor & General Finance Shows Positive Results, Upgraded to 'Hold' by MarketsMOJO

Motor & General Finance, a microcap finance company, has recently caught the attention of investors and analysts. The stock has been upgraded to a 'Hold' by MarketsMOJO on July 16, 2024.
The company has shown positive results in the quarter ending March 2024, with its PBDIT(Q) at the highest of Rs 1.15 crore, PBT LESS OI(Q) at Rs 0.72 crore, and PAT(Q) at Rs 1.45 crore. This has led to the stock being in a bullish range, with its technical trend improving from mildly bullish on July 16, 2024. Multiple factors such as MACD, Bollinger Band, KST, and OBV are also indicating a bullish trend for the stock.

The majority shareholders of Motor & General Finance are its promoters, which can be seen as a positive sign for the company. However, the stock has weak long-term fundamental strength, with an average ROE of 0% and poor long-term growth as its net sales have only grown by an annual rate of 2.17%.

Moreover, with a ROE of 1.5, the stock is currently trading at a very expensive valuation with a price to book value of 2. This is higher than its average historical valuations, indicating that the stock is currently trading at a premium. In the past year, while the stock has generated a return of 13.43%, its profits have risen by 144.3%, resulting in a PEG ratio of 0.9.

In the last year, Motor & General Finance has underperformed the market, with a return of 13.43% compared to the market (BSE 500) returns of 37.74%. This may be a cause for concern for investors, but it is important to note that the company has shown positive results in the recent quarter and has a bullish technical trend. Investors may want to hold onto their positions and monitor the company's performance in the coming quarters.