Speciality Restaurants Upgraded to 'Hold' by MarketsMOJO, Shows Healthy Long-Term Growth

Speciality Restaurants, a smallcap company in the lifestyle industry, has recently been upgraded to a 'Hold' by MarketsMOJO on February 6, 2024. This upgrade is based on the company's healthy long-term growth, with an annual operating profit growth rate of 51.57%.
Technically, the stock is currently in a Mildly Bullish range, with an improved trend from Sideways on February 2, 2024. Since then, it has generated a return of -4.34%. Multiple factors, such as MACD, KST, DOW, and OBV, are also indicating a bullish trend for the stock.

At a ROE of 29.3, the company has a very attractive valuation with a price to book value of 4.2. It is currently trading at a discount compared to its average historical valuations. In the past year, while the stock has only generated a return of 1.66%, its profits have increased by 83.8%. The PEG ratio of the company is also at a low 0.2.

However, the company's management efficiency is a concern, with a low ROE of 8.13%. This signifies a low profitability per unit of shareholders' funds.

In December 2023, the company reported negative results, with a fall of -32.53% in PBT LESS OI(Q) at Rs 8.94 crore and a fall of -10.1% in PAT(Q) at Rs 13.83 crore. NON-OPERATING INCOME(Q) also accounted for 42.58% of the company's PBT.

Despite being a smallcap company, domestic mutual funds hold only 0% of the company. This could indicate that they are not comfortable with the current price or the business, as they have the capability to conduct in-depth research on companies.

In the last year, the stock has underperformed the market, with a return of only 1.66% compared to the market's (BSE 500) return of 33.23%. While the company has shown potential for long-term growth, it is important for investors to carefully consider all factors before making any investment decisions.