MarketsMOJO Downgrades Vikram Thermo (India) to 'Sell' Due to High Valuation and Lack of Mutual Fund Interest

Vikram Thermo (India), a microcap company in the chemicals industry, has recently been downgraded to a 'Sell' by MarketsMOJO on October 30, 2024. This decision was based on several factors, including the company's high valuation with a price to book value of 4.6 and its premium trading compared to historical valuations. Despite its strong performance in the past year with a 45.90% return and a 58% increase in profits, the PEG ratio of the company is at 0.3, indicating an expensive valuation.
Another concerning factor is that domestic mutual funds hold only 0% of the company, which could suggest that they are not comfortable with the current price or the business itself. However, the company does have a low debt to equity ratio and has shown healthy long-term growth with an annual rate of 36.40% in operating profit.

In terms of recent results, Vikram Thermo (India) has shown positive growth in June 2024, with a 29.0% increase in PBT LESS OI(Q) and a 35.8% increase in PAT(Q). However, the technical trend for the stock is currently sideways, indicating no clear price momentum. The stock's technical trend has also deteriorated from mildly bullish on October 30, 2024, and has only generated a 1.51% return since then.

Despite consistent returns over the last 3 years and outperforming the BSE 500, MarketsMOJO has downgraded Vikram Thermo (India) to a 'Sell' due to its expensive valuation and lack of interest from domestic mutual funds. Investors should carefully consider these factors before making any decisions regarding this microcap company in the chemicals industry.