Vadilal Industries Receives Upgraded Stock Call, Shows Strong Growth and Consistent Returns

Vadilal Industries, a smallcap FMCG company, has recently received an upgraded stock call from MarketsMOJO. The company's stock has been upgraded to 'Hold' on November 13, 2024.
The decision to upgrade the stock to 'Hold' is based on the company's healthy long-term growth, with an annual operating profit growth rate of 24.43%. In addition, Vadilal Industries has declared positive results for the last 5 consecutive quarters, with its operating profit to interest ratio at a high of 31.94 times and its net sales at Rs 464.25 crore.

Furthermore, the company's PBDIT (Profit Before Depreciation, Interest, and Taxes) is also at a high of Rs 113.39 crore. With a ROCE (Return on Capital Employed) of 26.4, the company has a very attractive valuation with a 4 Enterprise value to Capital Employed.

In terms of historical valuations, the stock is currently trading at a discount. Despite generating a return of 46.52% in the past year, the company's profits have also risen by 29.3%, resulting in a PEG (Price/Earnings to Growth) ratio of 0.6.

Vadilal Industries has also shown consistent returns over the last 3 years, outperforming the BSE 500 in each of the last 3 annual periods.

However, the stock is currently in a mildly bearish range, with multiple technical factors such as RSI, MACD, Bollinger Band, and KST indicating a bearish trend.

It is also worth noting that despite being a smallcap company, domestic mutual funds hold only 0.13% of the company. This could signify that either they are not comfortable with the current price or they have not conducted in-depth research on the company.

Overall, Vadilal Industries has shown promising growth and consistent returns, making it a stock worth considering for a 'Hold' position in one's portfolio.