Starteck Finance Receives 'Hold' Rating from MarketsMOJO, Shows Positive Results in Recent Quarters

Starteck Finance, a microcap finance company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes as the company has shown positive results for the last three consecutive quarters. In the last nine months, the company's PAT has increased to Rs 13.62 crore, while its net sales have grown by 23.5% to Rs 10.93 crore.
Technically, the stock is currently in a bullish range and has shown improvement from being mildly bullish on 27th June 2024. This can be attributed to multiple factors such as MACD, Bollinger Band, KST, and OBV, all of which are bullish for the stock.

The majority shareholders of Starteck Finance are its promoters, indicating their confidence in the company's performance. The stock has also outperformed the market (BSE 500) with a return of 118.56% in the last year, compared to the market's return of 38.74%.

However, the company's long-term fundamental strength is weak, with an average ROE of 8.56%. Its net sales have only grown at an annual rate of 20.39%, and its operating profit at 8.59%, indicating poor long-term growth. Additionally, with an ROE of 7.8, the stock is currently trading at an expensive valuation with a price to book value of 1.4, which is higher than its historical average.

Despite its strong performance in the past year, the stock's profits have only increased by 55.5%, resulting in a 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 Starteck Finance has shown positive results in the recent past and has a bullish technical trend, its long-term fundamental strength 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.