MarketsMOJO Downgrades Vibrant Global Capital to 'Sell' Rating Due to Weak Fundamental Strength

Vibrant Global Capital, a microcap finance company, has recently received a 'Sell' rating from MarketsMOJO. This downgrade is based on the company's weak long-term fundamental strength, with a CAGR growth in net sales of only 12.60%.
Despite positive results in the last three quarters, with net sales growing at 50.78%, PBT less OI growing at 56.61%, and PAT growing at 51.7%, the technical trend for the stock is currently sideways, indicating no clear price momentum. This trend has worsened since March 13, 2024, resulting in a -3.38% return.

However, Vibrant Global Capital does have an attractive valuation with a ROE of 31.5 and a price to book value of 1.2. The stock is currently trading at a fair value compared to its historical valuations.

In the past year, the stock has outperformed the market with a return of 53.35%, while its profits have risen by 699%. The majority shareholders of the company are the promoters, indicating their confidence in the company's performance.

Overall, while Vibrant Global Capital has shown strong growth in the past year, the recent downgrade to 'Sell' by MarketsMOJO suggests caution for potential investors. It is important to carefully consider all factors before making any investment decisions.