MarketsMOJO Downgrades Vikram Thermo (India) to 'Sell' Due to Technical and Valuation Factors

Vikram Thermo (India), a microcap company in the chemicals industry, has recently received a 'Sell' rating from MarketsMOJO. This downgrade is based on various technical factors, including a Mildly Bearish trend, negative returns since November 27, 2024, and Bearish Bollinger Band and KST factors.
In addition, the company's valuation is considered Very Expensive with a high Price to Book Value of 5.1. This is significantly higher than its historical average and may indicate an overvalued stock. While the stock has generated a return of 26.47% in the past year, its profits have only increased by 47.6%, resulting in a low PEG ratio of 0.4.

Another concerning factor is the low stake held by domestic mutual funds in the company, at only 0%. This may suggest that they are not comfortable with the current price or the business itself, despite the company's healthy long-term growth and low Debt to Equity ratio.

In terms of recent performance, Vikram Thermo (India) has shown positive results in September 2024, with its highest Operating Cash Flow and PBDIT in the past year. However, its PBT LESS OI is also at its highest, indicating potential challenges in managing expenses and generating profits.

Overall, based on the current technical and valuation factors, MarketsMOJO has downgraded its stock call on Vikram Thermo (India) to 'Sell'. Investors should carefully consider these factors before making any investment decisions.