CG-VAK Software & Exports Receives 'Hold' Rating

CG-VAK Software & Exports, a microcap IT software company, has recently received a 'Hold' rating from MarketsMOJO on November 22, 2023. This upgrade is based on the company's high management efficiency, with a ROE of 19.61%. Additionally, the company has a low Debt to Equity ratio and has shown healthy long-term growth with an annual operating profit growth rate of 46.14%.
Technically, the stock is currently in a Mildly Bullish range and has shown improvement since November 22, 2023, generating a return of -1.77%. The key technical factor, MACD, has also been Bullish since the same date. With a ROE of 19.4, the stock is fairly valued with a Price to Book Value of 3.8. However, it is currently trading at a premium compared to its average historical valuations.

Over the past year, CG-VAK Software & Exports has generated a return of 19.61%, outperforming the BSE 500 index. Its profits have also risen by 1.5% during this period. The majority shareholders of the company are the promoters, indicating their confidence in the company's performance.

While the company has consistently generated positive returns over the last 3 years, it did face some challenges in September 2023. The ROCE (HY) was at its lowest at 25.24%, and the CASH AND CASH EQUIVALENTS (HY) were also at their lowest at Rs 9.20 crore. The DEBTORS TURNOVER RATIO (HY) was also at its lowest at 5.91 times. However, these negative results do not reflect the overall performance of the company and should be considered in the context of its long-term growth and efficiency.