IVP Receives 'Sell' Rating from MarketsMOJO

IVP, a microcap company in the chemicals industry, has recently received a 'Sell' rating from MarketsMOJO on December 7, 2023. This downgrade is based on several factors, including weak long-term fundamental strength with an average ROCE of 7.03%, poor long-term growth with an annual operating profit growth rate of 13.94% over the last 5 years, and a high debt to EBITDA ratio of 7.51 times.
In addition, the company's recent financial results for September 2023 have shown a decline in PBT LESS OI(Q) at Rs 5.41 crore, PAT(Q) at Rs 4.64 crore, and NET SALES(Q) at Rs 141.97 crore. These results have further contributed to the 'Sell' rating.

On a positive note, the stock is currently in a bullish range and has shown improvement in its technical trend since October 27, 2023, generating a return of 45.83% since then. However, the stock is still trading at a discount compared to its historical valuations and has a fair valuation with an ROCE of 15.8 and an enterprise value to capital employed ratio of 1.6.

It is worth noting that the majority shareholders of IVP are promoters, and the company has consistently generated returns over the last 3 years, outperforming the BSE 500 index. However, despite the recent positive trends, the overall outlook for IVP remains 'Sell' based on its weak long-term fundamentals and high debt levels. Investors should carefully consider these factors before making any investment decisions.