Technical Trends Shift to Mildly Bullish
The most significant catalyst behind the upgrade is the change in Calcom Vision’s technical grade, which moved from a sideways trend to a mildly bullish stance. This shift is underpinned by a mixed but improving set of technical indicators. On a weekly basis, the Moving Average Convergence Divergence (MACD) remains mildly bearish, but the monthly MACD has turned mildly bullish, suggesting a longer-term positive momentum building up.
Other technical signals present a nuanced picture: the Relative Strength Index (RSI) is bearish on the weekly chart but neutral on the monthly, while Bollinger Bands indicate bearishness on both weekly and monthly timeframes. However, the daily moving averages have turned mildly bullish, and the Know Sure Thing (KST) indicator shows bullish momentum weekly and mildly bullish monthly. These mixed signals imply that while short-term volatility persists, the medium-term outlook is improving.
Price action supports this technical upgrade. The stock closed at ₹105.95 on 19 Jan 2026, slightly down from the previous close of ₹106.55, but well above its 52-week low of ₹71.55. The 52-week high remains ₹147.50, indicating room for recovery. Despite a 1-week return of -2.84% and a 1-month return of -20.64%, the technical indicators suggest a potential bottoming out and a mild bullish trend emerging.
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Valuation Grade Upgraded to Very Attractive
Alongside technical improvements, Calcom Vision’s valuation grade was upgraded from attractive to very attractive. The company currently trades at a price-to-earnings (PE) ratio of 25.6, which is reasonable given its sector and growth prospects. More notably, the enterprise value to EBITDA ratio stands at 12.2, reflecting a fair valuation relative to earnings before interest, tax, depreciation and amortisation.
The price-to-book value ratio is 1.73, and the enterprise value to capital employed is a low 1.45, indicating that the stock is trading at a discount compared to its peers. The PEG ratio is exceptionally low at 0.04, signalling that the company’s earnings growth is not fully priced in by the market. This is particularly compelling given Calcom Vision’s recent financial performance.
Return on capital employed (ROCE) is 8.44%, and return on equity (ROE) is 6.76%, which are modest but improving metrics. The company’s dividend yield is not available, reflecting a focus on reinvestment and growth rather than shareholder payouts at this stage.
Financial Trend: Strong Growth Amidst Profitability Challenges
Calcom Vision has demonstrated very positive financial results in recent quarters, notably in Q2 FY25-26. Net sales have grown at an annualised rate of 42.07%, while operating profit surged by 63.71%. Net profit growth has been even more impressive, rising by 201.43% in the latest quarter. The company has reported positive results for four consecutive quarters, signalling consistent operational improvement.
Operating cash flow for the year reached a high of ₹11.12 crores, and the half-year ROCE improved to 9.53%. Net sales for the first nine months stood at ₹155.40 crores, underscoring strong top-line momentum. Despite these gains, the company’s profitability ratios remain modest, with ROCE and ROE indicating low returns on capital and equity respectively.
Long-term returns have been mixed. While the stock has underperformed the Sensex over the past 1, 3, and 5 years, generating -15.24%, -29.58%, and 266.61% returns respectively, its 10-year return of 2102.7% vastly outpaces the Sensex’s 240.06%. This suggests that while recent years have been challenging, the company has delivered exceptional long-term value.
Technical and Financial Risks Remain
Despite the upgrade, investors should be mindful of certain risks. The company’s ROCE of 8.44% and ROE of 6.76% are relatively low, indicating limited efficiency in generating profits from capital and equity. Additionally, Calcom Vision carries a high debt-to-EBITDA ratio of 3.21 times, which raises concerns about its ability to service debt comfortably.
Moreover, the stock has consistently underperformed the BSE500 benchmark over the last three years, reflecting challenges in maintaining competitive performance. The mixed technical signals, including bearish weekly RSI and Bollinger Bands, also suggest that volatility and downside risks persist in the short term.
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Summary and Outlook
Calcom Vision Ltd’s upgrade to a Buy rating reflects a confluence of improving technical indicators and a more compelling valuation profile, supported by strong recent financial performance. The shift from a sideways to a mildly bullish technical trend, combined with a very attractive valuation grade, has encouraged analysts to revise their stance positively.
However, investors should weigh these positives against the company’s modest profitability ratios, high leverage, and recent underperformance relative to benchmarks. The stock’s current price near ₹106 remains below its 52-week high of ₹147.50, offering potential upside if the company can sustain its growth trajectory and improve operational efficiency.
Overall, Calcom Vision presents an interesting opportunity for investors seeking exposure to the Electronics & Appliances sector with a micro-cap focus, but it requires careful monitoring of financial health and market conditions.
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