IVP Receives 'Hold' Rating, Technicals Show Bullish Trend

IVP, a microcap company in the chemicals industry, has recently received a 'Hold' rating from MarketsMOJO on December 20, 2023. This upgrade is based on various technical indicators that show a bullish trend for the stock.

Since October 27, 2023, the stock has shown a significant improvement in its technical trend, resulting in a 28.71% return. Factors such as MACD, Bollinger Band, KST, DOW, and OBV all point towards a bullish outlook for the stock.

In terms of valuation, IVP has an attractive ROCE of 15.8 and a low enterprise value to capital employed ratio of 1.5. Additionally, the stock is currently trading at a discount compared to its historical valuations. In the past year, the stock has generated a return of 63.05%, while its profits have increased by 7.7%. The PEG ratio of the company stands at 1.2.

The majority shareholders of IVP are its promoters, indicating their confidence in the company's performance. The stock has also outperformed the BSE 500 index in the last 3 years, 1 year, and 3 months, showcasing its market-beating performance.

However, the company's long-term fundamental strength is weak, with an average ROCE of 7.03%. Its operating profit has only grown at an annual rate of 13.94% over the last 5 years, indicating poor long-term growth. Additionally, the company has a high debt to EBITDA ratio of 7.51 times, which may affect its ability to service debt.

In the latest quarter, IVP's results have been flat, with a decline in PBT, PAT, and net sales. PBT less OI(Q) has fallen by 32.3%, PAT(Q) has fallen by 27.8%, and net sales(Q) have fallen by 11.0%.

Overall, while IVP's technical indicators show a bullish trend, its long-term fundamental strength and recent financial results raise some concerns. Investors are advised to hold the stock and monitor its performance closely.