Vardhman Special Steels Receives 'Sell' Rating from MarketsMOJO, But Shows Positive Growth.

Vardhman Special Steels, a smallcap company in the steel/sponge iron/pig iron industry, has recently received a 'Sell' rating from MarketsMOJO on 2024-11-07. This downgrade is due to the stock being in a Mildly Bearish range and its technical trend deteriorating from Bullish on 01-Oct-24, resulting in a -12.89% return since then. Multiple indicators such as MACD, Bollinger Band, and KST also suggest a Mildly Bearish outlook for the stock.
One of the reasons for the 'Sell' rating is the company's expensive valuation with a ROCE of 14 and an Enterprise value to Capital Employed ratio of 2.9. However, the stock is currently trading at a discount compared to its average historical valuations. Despite generating a return of 22.26% in the past year, the company's profits have only risen by 11.7%, resulting in a PEG ratio of 2.

On a positive note, Vardhman Special Steels has declared positive results for the last 3 consecutive quarters, with a growth of 40.16% in PAT(HY) at Rs 51.90 cr and the highest NET SALES(Q) at Rs 494.82 cr. Additionally, there has been an increase in participation by institutional investors, who now hold 4.45% of the company's stake. This suggests that these investors, with better resources and capabilities, have confidence in the company's fundamentals.

Overall, while the stock may not be performing well currently, it is important to consider both the positive and negative factors before making any investment decisions. Investors should also keep an eye on the company's future performance and any changes in its fundamentals.