Nuvoco Vistas Corporation Receives 'Hold' Rating from MarketsMOJO After Positive Results and Technical Improvements

Nuvoco Vistas Corporation, a midcap company in the cement industry, has recently received a 'Hold' rating from MarketsMOJO on February 20, 2024. This upgrade comes after the company reported positive results in December 2023, with a 115.83% growth in its PAT (HY) at Rs 32.56 crore. Additionally, the company's operating profit to interest (Q) ratio has reached its highest at 3.08 times, while its PBDIT (Q) has also reached its highest at Rs 410.41 crore.
Technically, the stock is currently in a mildly bullish range and has shown improvement from a sideways trend on February 20, 2024. The KST and OBV technical factors are also bullish, indicating a positive trend for the stock.

With a ROCE of 3.1, the stock is currently trading at an attractive valuation with a 1.3 enterprise value to capital employed. It is also trading at a discount compared to its average historical valuations. Despite generating a negative return of -4.56% in the past year, the company's profits have risen by 518.9%, resulting in a PEG ratio of 0.

However, Nuvoco Vistas Corporation has a high institutional holding of 23.02%, indicating that these investors have better capability and resources to analyze the company's fundamentals compared to retail investors.

On the other hand, the company has weak long-term fundamental strength with a -30.41% CAGR growth in operating profits over the last 5 years. It also has a high debt to EBITDA ratio of 4.51 times, indicating a low ability to service debt. The company has also reported losses, resulting in a negative ROE.

In the last 1 year, Nuvoco Vistas Corporation has underperformed the market, with the BSE 500 generating returns of 34.87% while the stock has generated negative returns of -4.56%. This could be a cause for concern for investors.

Overall, while the recent positive results and technical factors may indicate a hold rating for Nuvoco Vistas Corporation, its weak long-term fundamentals and underperformance in the market may be a cause for caution for investors.