Sumedha Fiscal Services Receives 'Hold' Rating After Strong Quarter Results

Sumedha Fiscal Services, a microcap finance company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes after the company has shown positive results for the last three consecutive quarters. In the last nine months, the company's profits have grown by an impressive 146.64%, with net sales also showing a growth of 23.96%.
Technically, the stock is currently in a mildly bullish range and has shown improvement from a sideways trend on 03 May 2024. The key technical factor, MACD, has also been mildly bullish since then. With a return on equity of 8.3 and a price to book value of 0.7, the stock is considered to be trading at an attractive valuation compared to its historical average.

However, the company's long-term fundamental strength is weak, with an average ROE of 7.68% and poor growth in operating profit. In the last year, the stock has underperformed the market (BSE 500) with negative returns of -25.16%, while the market has generated returns of 36.10%. This could be a cause for concern for potential investors.

It is worth noting that the majority of shareholders in Sumedha Fiscal Services are non-institutional investors. This could indicate a lack of confidence from larger, more experienced investors in the company's future prospects.

Overall, while the recent positive results and technical trend may make Sumedha Fiscal Services a hold for now, the company's weak long-term fundamentals and underperformance in the market may make it a risky investment for those looking for long-term growth. Investors should carefully consider all factors before making any decisions regarding this microcap finance company.