IVP Ltd Upgraded to Hold by MarketsMOJO Amid Mixed Financial and Technical Signals

Quality Assessment: Steady Operational Strength Amidst Market Challenges

IVP Ltd’s quality metrics reveal a company with solid operational performance, particularly in the latest quarter Q3 FY25-26. Operating profit has grown at an impressive annual rate of 46.39%, signalling robust core business momentum. The company reported its highest quarterly PBDIT at ₹8.65 crores, alongside an operating profit to net sales ratio of 5.97%, the best in recent history. Furthermore, the operating profit to interest coverage ratio reached a peak of 5.09 times, underscoring strong debt servicing capability.

Return on Capital Employed (ROCE) stands at 7.9%, which, while not exceptional, indicates efficient utilisation of capital relative to peers. The majority shareholding remains with promoters, suggesting stable ownership and potential alignment with shareholder interests. However, the company’s long-term returns have been mixed, with a 1-year return of -20.33% contrasting with a 5-year return of 85.55%, reflecting volatility and cyclical pressures in the commodity chemicals industry.

Valuation: Attractive Pricing Amid Discount to Peers

IVP Ltd’s valuation profile has improved, contributing to the upgrade. The stock currently trades at ₹148.35, modestly up 2.95% on the day, and well below its 52-week high of ₹214.00. The enterprise value to capital employed ratio is a very attractive 1.0, signalling that the market is pricing the company conservatively relative to its asset base. This discount is further highlighted when compared to historical valuations of industry peers.

Despite the subdued share price performance over the past year, the company’s profits have increased by 14.5%, resulting in a PEG ratio of 0.8. This suggests the stock is undervalued relative to its earnings growth potential, a key consideration for investors seeking value opportunities in the commodity chemicals sector.

Financial Trend: Positive Quarterly Results Amid Mixed Long-Term Returns

The financial trend for IVP Ltd has shown encouraging signs in the near term, particularly with the positive results reported in December 2025. The company’s operating profit to interest coverage ratio at 5.09 times and PBDIT of ₹8.65 crores mark significant improvements, reflecting operational efficiency and better cost management.

However, the longer-term financial trend remains mixed. While the company has delivered a 5-year return of 85.55%, outperforming the Sensex’s 65.60% over the same period, the 1-year return of -20.33% is a cause for concern. This underperformance is compounded by the stock’s lagging behind the BSE500 index over the last three years and one year, indicating challenges in sustaining momentum amid sectoral headwinds.

Nonetheless, the positive quarterly earnings growth of 46.39% annually and a profit rise of 14.5% over the past year provide a foundation for cautious optimism. The PEG ratio of 0.8 further supports the view that earnings growth is not fully reflected in the current share price.

Technicals: Shift from Bearish to Mildly Bearish Signals Improved Market Sentiment

The technical outlook for IVP Ltd has been a key driver behind the rating upgrade. The technical grade has shifted from bearish to mildly bearish, signalling a tentative improvement in market sentiment. Key indicators present a mixed but cautiously positive picture:

• MACD remains bearish on both weekly and monthly charts, indicating some lingering downward momentum.
• RSI shows no clear signal on weekly and monthly timeframes, suggesting a neutral momentum phase.
• Bollinger Bands have moved to mildly bearish on weekly and monthly charts, reflecting reduced volatility and a potential consolidation phase.
• Moving averages on the daily chart are mildly bearish, but the On-Balance Volume (OBV) indicator is bullish on both weekly and monthly scales, hinting at accumulation by investors.
• KST remains bearish, while Dow Theory shows no definitive trend, underscoring the cautious stance of technical analysts.

Price action supports this technical reassessment, with the stock closing at ₹148.35 on 5 February 2026, up from the previous close of ₹144.10. The day’s trading range was ₹145.25 to ₹148.70, indicating buying interest near current levels. The 52-week low of ₹126.95 provides a support reference, while the 52-week high of ₹214.00 remains a distant target.

Comparative Performance: Returns Versus Sensex and Sector Benchmarks

When analysing IVP Ltd’s returns relative to the Sensex, the stock has exhibited a mixed performance profile. Over the past week, IVP outperformed the Sensex significantly, delivering an 11.88% return compared to the benchmark’s 1.79%. However, this short-term strength contrasts with a negative 4.78% return over the past month, which still outpaces the Sensex’s -2.27% decline.

Year-to-date, IVP has generated a modest 2.06% return, outperforming the Sensex’s -1.65%. Yet, over the last year, the stock’s -20.33% return starkly contrasts with the Sensex’s 6.66% gain, highlighting recent challenges. Longer-term, the 3-year return of 12.30% trails the Sensex’s 37.76%, and the 10-year return of 55.67% is well below the Sensex’s 244.38%, reflecting the cyclical nature of the commodity chemicals sector and company-specific factors.

These comparative metrics underscore the importance of the recent upgrade as a signal of stabilisation rather than a full recovery, with investors advised to weigh sectoral dynamics carefully.

Outlook and Investment Implications

The upgrade of IVP Ltd’s rating to Hold from Sell reflects a balanced view of the company’s prospects. The improved technical indicators, attractive valuation metrics, and positive quarterly financial results provide a foundation for cautious optimism. However, the company’s underperformance relative to broader market indices and peers over the medium to long term tempers enthusiasm.

Investors should consider IVP Ltd as a stock with potential upside supported by improving fundamentals and technicals, but also with risks stemming from sector volatility and past price weakness. The Hold rating suggests that while the stock is no longer a sell, it may not yet warrant a Buy recommendation until further confirmation of sustained financial and price momentum.

Summary of Ratings and Scores

As of 4 February 2026, IVP Ltd holds a Mojo Score of 51.0, corresponding to a Mojo Grade of Hold, upgraded from a previous Sell rating. The Market Cap Grade stands at 4, reflecting its mid-tier market capitalisation within the commodity chemicals sector. The technical grade’s shift from bearish to mildly bearish was the primary catalyst for the rating change, supported by steady financial trends and valuation improvements.

Overall, IVP Ltd’s upgrade signals a cautious but positive reassessment by analysts, highlighting the importance of monitoring ongoing quarterly results and technical developments for future rating revisions.

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