MarketsMOJO Downgrades Vijay Solvex to 'Sell' Due to Poor Long-Term Growth and Negative Results

Vijay Solvex, a microcap company in the refined oil and vanaspati industry, has recently been downgraded to a 'Sell' by MarketsMOJO on July 8, 2024. This decision was based on the company's poor long-term growth, with an annual operating profit growth rate of -51.99% over the last 5 years.
In addition, Vijay Solvex has declared negative results for the past 8 consecutive quarters, with a net sales of only Rs 404.97 crore and a PAT (HY) growth of -75.24%. Its ROCE (HY) is also at a low of 1.52%, indicating a lack of profitability.

Furthermore, the company's ROE of 0.9 suggests a very expensive valuation, with a price to book value of 1.2. This is also reflected in the stock's trading at a premium compared to its average historical valuations. Despite generating a return of 17.49% in the past year, the company's profits have fallen by -82.7%, underperforming the market (BSE 500) returns of 37.98%.

Other factors to consider include the company's low debt to equity ratio of 0.05 times and its technical position in a mildly bullish range. However, multiple indicators such as MACD, Bollinger Band, and KST suggest a bullish outlook for the stock.

It is worth noting that the majority shareholders of Vijay Solvex are promoters, indicating their confidence in the company's future prospects. However, based on the current financial performance and market trends, MarketsMOJO has downgraded the stock to a 'Sell'. Investors are advised to carefully consider these factors before making any investment decisions.