Transcorp International Receives 'Hold' Rating After Positive Results and Bullish Technical Trend

Transcorp International, a microcap trading company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes after the company reported positive results in December 2023, with the highest PBT LESS OI(Q) at Rs 1.52 crore, PAT(Q) at Rs 1.96 crore, and EPS(Q) at Rs 0.62.
The stock is currently in a bullish range and has shown improvement in its technical trend since March 1, 2024, generating a return of -1.85%. Multiple factors, such as MACD, Bollinger Band, KST, and OBV, indicate a bullish outlook for the stock.

The majority shareholders of Transcorp International are its promoters, indicating their confidence in the company's future prospects. However, the company's long-term fundamental strength is weak, with an average ROE of 4.71% and poor growth in net sales at an annual rate of 1.72%.

The stock is currently trading at a premium compared to its historical valuations, with a price to book value of 2.2 and an ROE of 1.4, making it very expensive. Despite generating a return of 32.05% in the past year, the company's profits have only risen by 210%, resulting in a low PEG ratio of 0.1.

Overall, while Transcorp International has shown positive results and a bullish technical trend, its weak long-term fundamentals and expensive valuation suggest a 'Hold' rating for now. Investors should keep an eye on the company's future performance before making any investment decisions.