Objectone Information Systems Receives 'Hold' Rating

Objectone Information Systems, a microcap IT software company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes as the stock has shown a bullish trend and has improved technically from mildly bullish to a bullish range on December 20, 2023.
The stock has multiple bullish factors such as MACD, Bollinger Band, KST, and OBV. Additionally, with a return on equity (ROE) of 11.9%, the company has an attractive valuation with a price to book value of 1.3. It is also trading at a fair value compared to its historical valuations.

Over the past year, Objectone Information Systems has generated a return of 25.96%, while its profits have increased by 56%. This has resulted in a low PEG ratio of 0.2, indicating potential for future growth.

The majority shareholders of the company are non-institutional investors, and the stock has consistently outperformed the BSE 500 index in the last three annual periods.

However, the company's long-term fundamental strength is weak, with an average ROE of 5.75%. Its ability to service its debt is also poor, with a low EBIT to interest ratio of 1.30.

In the last quarter, the company's net sales were at its lowest at Rs 9.20 crore. While the stock has shown strong performance in the past year, investors should consider the company's weak long-term fundamentals before making any investment decisions.