Selan Explorations Technology Receives 'Hold' Rating from MarketsMOJO Despite Bullish Performance

Selan Explorations Technology, a smallcap company in the oil exploration and refineries industry, has recently received a 'Hold' rating from MarketsMOJO on September 25, 2024. This downgrade comes as the company's stock has been performing in a mildly bullish range, with multiple factors such as MACD, Bollinger Band, KST, and DOW indicating a bullish trend.
Despite the company's outstanding results in the last quarter, with a growth in net profit of 260.91%, MarketsMOJO has downgraded the stock to 'Hold' due to its poor long-term growth. Over the last 5 years, Selan Explorations Technology has only seen a 17.71% annual growth in net sales and a 2.41% growth in operating profit. This has resulted in a low debt to equity ratio of 0 times, which is a positive sign for the company.

However, the stock is currently trading at a premium compared to its historical valuations, with a price to book value of 3.4. This, along with a return on equity of 11.7, indicates a very expensive valuation for the company. Additionally, while the stock has generated a return of 124.80% in the last year, its profits have only risen by 71.2%, resulting in a PEG ratio of 0.4.

Despite these concerns, Selan Explorations Technology has consistently outperformed the BSE 500 index in the last 3 annual periods, showcasing its potential for growth. However, MarketsMOJO has advised investors to hold off on buying the stock for now, until there is a more significant improvement in its long-term growth prospects.