MarketsMOJO downgrades Vikram Thermo (India) to 'Sell' due to high valuation and limited investor interest.

Vikram Thermo (India), a microcap company in the chemicals industry, has recently been downgraded to a 'Sell' by MarketsMOJO on November 12, 2024. This decision was based on several factors, including the company's high valuation with a price to book value of 4.8 and its premium trading compared to historical valuations. Despite a strong return of 20.96% in the past year, the company's profits have only risen by 58%, resulting in a low PEG ratio of 0.3. Additionally, domestic mutual funds hold a small stake of only 0% in the company, which could indicate a lack of confidence in the company's current price or business. On a positive note, Vikram Thermo (India) has a low debt to equity ratio and has shown healthy long-term growth with an annual rate of 36.40% in operating profit. The company also reported positive results in June 2024, with the highest PBT LESS OI(Q) at Rs 11.02 crore and PAT(Q) at Rs 8.99 crore. However, the technical trend for the company is currently sideways, indicating no clear price momentum. The trend has also deteriorated from mildly bullish on November 12, 2024, resulting in a -4.62% return since then. In conclusion, while Vikram Thermo (India) may have some positive aspects, the recent downgrade to 'Sell' by MarketsMOJO suggests caution for potential investors. With a microcap size and limited interest from domestic mutual funds, it may be wise to carefully consider all factors before making any investment decisions.