TechNVision Ventures Downgraded to 'Hold' by MarketsMOJO, Despite Recent Positive Results

TechNVision Ventures, a smallcap company in the BPO/ITeS industry, has recently been downgraded to a 'Hold' by MarketsMOJO on September 2, 2024. This decision was based on the company's low Debt to Equity ratio, which is currently at 0 times.
However, the company has shown positive results in the past quarter, with a growth in Net Sales of 67.66%. In fact, TechNVision Ventures has declared positive results for the last 4 consecutive quarters. Its PBT LESS OI(Q) has grown at 134.22%, while PAT(Q) has grown at 131.6% and NET SALES(Q) has grown at 67.66%.

Technically, the stock is in a Mildly Bullish range, with multiple factors such as MACD, KST, and DOW indicating a bullish trend. In the long term, the stock has outperformed BSE 500 and has generated 1900.71% returns in the last 1 year.

However, the company has shown poor long term growth, with an annual growth rate of only 19.10% in Operating profit over the last 5 years. Additionally, with a ROE of 88.8, the stock is currently trading at a Very Expensive valuation with a 162.3 Price to Book Value. This is significantly higher than its average historical valuations.

Despite its impressive returns in the past year, the PEG ratio of the company is 0.3, indicating that its profits have not grown at the same rate as its stock price. Furthermore, 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. This is surprising considering the company's size and the fact that domestic mutual funds have the capability to conduct in-depth research on companies.

In conclusion, while TechNVision Ventures has shown positive results in the past quarter and has a bullish trend in the stock market, its long term growth and expensive valuation may be cause for concern. Investors may want to hold off on buying or selling this stock until further developments.