Qgo Finance Receives 'Hold' Rating After Consistently Positive Results in Past 8 Quarters

Qgo Finance, a microcap finance company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes after the company has consistently shown positive results for the past 8 quarters. In the last half year, the company's net sales have grown by 20.83% to reach Rs 7.02 crore, with the highest PBDIT of Rs 3.21 crore and PAT of Rs 0.69 crore.
The stock is currently in a bullish range and its technical trend has improved from mildly bullish to bullish on 18-Mar-24. Multiple factors such as MACD, Bollinger Band, KST, DOW, and OBV are contributing to the stock's bullish trend.

The majority shareholders of Qgo Finance are its promoters, indicating their confidence in the company's performance. The stock has also consistently outperformed BSE 500 in the last 3 annual periods, with a return of 37.08% in the last year alone.

However, the company's long-term fundamental strength is weak with an average Return on Equity (ROE) of 7.99%. Its current ROE of 15.1 also indicates an expensive valuation with a price to book value of 2.9. The stock is currently trading at a premium compared to its historical valuations.

Despite the stock's impressive return of 37.08% in the last year, its profits have only risen by 63.2%, resulting in a low PEG ratio of 0.3. This suggests that the stock may be overvalued and investors should exercise caution before making any investment decisions.

In conclusion, while Qgo Finance has shown positive results and a bullish trend in the short term, its weak long-term fundamentals and expensive valuation may warrant a 'Hold' rating for now. Investors should keep a close eye on the company's performance and future developments before making any investment decisions.