Real Touch Finance Receives 'Hold' Rating After Consistent Positive Results in Past 7 Quarters

Real Touch 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 7 quarters. In the last half year, the company's net sales have grown by 23.10%, with the highest PBDIT and PBT LESS OI recorded at Rs 4.80 cr and Rs 1.39 cr respectively.
The stock is currently in a bullish range and has shown improvement in its technical trend from mildly bullish to bullish on 30-Sep-24. Multiple factors such as MACD, Bollinger Band, KST, and DOW are contributing to the stock's bullish trend.

The majority shareholders of Real Touch Finance are its promoters, indicating their confidence in the company's performance. The stock has consistently outperformed BSE 500 in the last 3 years, with a remarkable 113.37% return in the last 1 year.

However, the company's long-term fundamental strength is weak, with an average ROE of 4.34%. Its current ROE of 6.6 also indicates a very expensive valuation with a 2.1 price to book value. The stock is currently trading at a premium compared to its historical valuations, and its profits have fallen by -12.1% in the past year.

Overall, while Real Touch Finance has shown positive results and a bullish trend, its weak long-term fundamental strength and expensive valuation make it a 'Hold' for now. Investors should keep an eye on the company's performance in the coming quarters to make an informed decision.