IVP receives 'Hold' rating from MarketsMOJO

IVP, a microcap company in the chemicals industry, has recently received a 'Hold' rating from MarketsMOJO on January 1, 2024. This upgrade is based on various technical indicators such as MACD, Bollinger Band, and KST, which all point towards a bullish trend for the stock.

In addition, the company's return on capital employed (ROCE) stands at an attractive 15.8%, making it a good value for investors. The stock is also currently trading at a discount compared to its historical valuations, making it an even more appealing option.

Over the past year, IVP has generated a return of 82.40%, outperforming the BSE 500 index. However, its profits have only risen by 7.7%, resulting in a PEG ratio of 1.2. The majority shareholders of the company are its promoters, indicating their confidence in the company's future performance.

While IVP has shown strong performance in the short term, its long-term fundamental strength is weak. The company's average ROCE over the last 5 years is only 7.03%, and its operating profit has grown at a slow annual rate of 13.94%. Additionally, the company has a high debt to EBITDA ratio of 7.51 times, indicating a low ability to service debt.

In the latest quarter, IVP's results have been flat, with a decrease in profit before tax and operating income by 32.3% and 27.8% respectively. Net sales have also fallen by 11.0%. These results may be a cause for concern for investors, and it is important to keep an eye on the company's future performance.

Overall, while IVP has shown strong market-beating performance in the short term, its long-term fundamentals and recent flat results may warrant a 'Hold' rating for now. Investors should carefully consider all factors before making any investment decisions.