MarketsMOJO Upgrades Virgo Global to 'Hold' Based on Positive Financial Results

MarketsMOJO has recently upgraded its stock call on Virgo Global to 'Hold' based on the company's positive financial results for the last 7 consecutive quarters. The company's DEBTORS TURNOVER RATIO(HY) is at its highest at 11.27 times, indicating efficient management of debtors. Additionally, the company's NET SALES(Q) has grown at an impressive rate of 28.5% and its PBDIT(Q) is at its highest at Rs 0.61 cr.
Technically, the stock is in a Bullish range and the technical trend has improved from Mildly Bullish on 02-May-24. Multiple factors such as MACD, Bollinger Band, and KST are also indicating a bullish trend for the stock.

However, there are some weak fundamental factors to consider. The company has a weak long-term fundamental strength with an average Return on Capital Employed (ROCE) of 7.55%. Its operating profit has only grown at an annual rate of 6.81% over the last 5 years, indicating slow growth. The company also has a high Debt to EBITDA ratio of -1.00 times, which shows a low ability to service debt.

In terms of valuation, the stock is currently trading at a premium compared to its historical average. With a ROCE of 3.1, it is considered to be very expensive with a 10 Enterprise value to Capital Employed. Additionally, while the stock has generated a return of 5.69% in the last year, its profits have fallen by -107.9%.

Overall, Virgo Global has underperformed the market in the last year with a return of 5.69%, much lower than the market (BSE 500) returns of 36.71%. MarketsMOJO's 'Hold' rating suggests that while the company's recent financial performance has been positive, there are still some concerns to be aware of before making any investment decisions.