Vadilal Industries: A Smallcap FMCG Company with Impressive Growth and Bullish Outlook

Vadilal Industries, a smallcap FMCG company, has recently caught the attention of investors as MarketsMOJO has upgraded its stock call to 'Buy' on September 13, 2024. This upgrade comes as no surprise, considering the company's impressive performance in the last few quarters.
One of the main reasons for this upgrade is the company's healthy long-term growth, with an annual operating profit growth rate of 32.30%. This is a clear indication of the company's strong financials and its ability to generate profits consistently.

In addition, Vadilal Industries has declared positive results for the last 5 consecutive quarters, with its operating profit to interest ratio being the highest at 31.94 times. Its net sales and PBDIT have also shown significant growth, with the highest figures being Rs 464.25 cr and Rs 113.39 cr respectively.

From a technical standpoint, the stock is currently in a bullish range and has shown improvement in its trend from mildly bullish to bullish on September 13, 2024. This is further supported by multiple bullish factors such as MACD, Bollinger Band, KST, and OBV.

Moreover, with a ROCE of 26.4 and an attractive valuation of 4.8 Enterprise value to Capital Employed, the stock is trading at a discount compared to its average historical valuations. This makes it an attractive investment opportunity for investors.

In the past year, Vadilal Industries has outperformed the market (BSE 500) with a return of 76.99%, while its profits have also seen a significant increase of 29.3%. This is reflected in the company's low PEG ratio of 0.7, indicating its undervalued status.

However, it is important to note that despite its strong performance, domestic mutual funds hold only 0% of the company. This could be a potential risk for investors, as these funds have the capability to conduct in-depth research on companies and their small stake may signify their discomfort with the stock's current price or business.

In conclusion, Vadilal Industries is a promising smallcap FMCG company with a strong financial track record and a bullish outlook. With its attractive valuation and market-beating performance, it is definitely a stock to watch out for in the coming months.