Veedol Corporation Ltd is Rated Hold by MarketsMOJO

Current Rating and Its Significance

MarketsMOJO’s 'Hold' rating for Veedol Corporation Ltd indicates a neutral stance on the stock, suggesting that investors should maintain their existing positions rather than aggressively buying or selling. This rating reflects a balanced view of the company’s prospects, where the potential risks and rewards are considered roughly equal. The rating was revised on 23 October 2025, when the Mojo Score dropped from 74 (Buy) to 51 (Hold), signalling a more cautious outlook based on evolving company fundamentals and market conditions.

Here’s How the Stock Looks Today

As of 11 January 2026, Veedol Corporation Ltd’s financial and market data present a nuanced picture. The stock has experienced a modest decline over the past year, with a 7.96% negative return. Shorter-term performance also shows weakness, including a 0.90% drop on the most recent trading day and a 16.01% decline over the past three months. Despite these price movements, the company’s underlying financial health and valuation metrics offer important insights for investors.

Quality Assessment

Veedol’s quality grade is assessed as average. The company maintains a low debt-to-equity ratio, effectively zero, which reduces financial risk and enhances balance sheet stability. However, its long-term growth trajectory is moderate, with net sales growing at an annualised rate of 11.53% and operating profit increasing by 8.35% over the last five years. While these figures indicate steady expansion, they do not reflect rapid growth, which tempers enthusiasm among growth-focused investors.

Valuation Perspective

The valuation grade for Veedol is very attractive, a key factor supporting the 'Hold' rating. The stock trades at a price-to-book value of 2.8, which is considered fair relative to its peers and historical averages. Additionally, the company boasts a return on equity (ROE) of 19.9%, signalling efficient use of shareholder capital. The price-to-earnings-to-growth (PEG) ratio stands at a low 0.5, suggesting the stock is undervalued relative to its earnings growth potential. Furthermore, Veedol offers a healthy dividend yield of 3.6%, providing income-oriented investors with an appealing feature amid market volatility.

Financial Trend and Profitability

Financially, Veedol shows positive momentum. The company has declared positive results for the last three consecutive quarters, with profit after tax (PAT) for the latest six months reaching ₹90.61 crores, reflecting a robust growth rate of 26.36%. Profit before tax excluding other income (PBT less OI) for the quarter stands at ₹51.41 crores, growing at 20.40%. Return on capital employed (ROCE) is notably high at 23.45%, underscoring efficient capital utilisation. These figures highlight a solid earnings trend that supports the stock’s valuation despite recent price softness.

Technical Outlook

The technical grade is mildly bearish, reflecting recent price declines and short-term negative momentum. The stock’s performance over the past six months and year has been subdued, with declines of 7.05% and 7.96% respectively. This technical weakness suggests caution for traders seeking immediate upside, although it may also present opportunities for value investors given the company’s fundamental strengths.

Promoter Confidence

Investor confidence is further bolstered by rising promoter stakes. Promoters have increased their holding by 2.23% over the previous quarter, now controlling 64.58% of the company. This increase signals strong insider belief in the company’s future prospects and can be interpreted as a positive endorsement of management’s strategy and operational outlook.

What This Rating Means for Investors

For investors, the 'Hold' rating on Veedol Corporation Ltd suggests a measured approach. The company’s attractive valuation and positive financial trends provide a foundation for potential gains, but the average quality grade and mild technical weakness advise caution. Investors should consider maintaining their current holdings while monitoring the stock’s price action and quarterly results for signs of sustained improvement or deterioration.

Given the stock’s dividend yield and promoter confidence, income-focused investors may find Veedol appealing as a steady income source with moderate growth prospects. However, those seeking aggressive capital appreciation might prefer to wait for clearer technical signals or stronger growth acceleration before increasing exposure.

Sector and Market Context

Operating within the oil sector, Veedol faces industry-specific challenges such as fluctuating crude prices and regulatory pressures. Its small-cap status adds an element of volatility compared to larger peers. Nonetheless, the company’s disciplined capital structure and consistent profitability help mitigate some sector risks, positioning it as a stable player within its niche.

Summary

In summary, Veedol Corporation Ltd’s current 'Hold' rating by MarketsMOJO reflects a balanced assessment of its strengths and weaknesses as of 11 January 2026. The stock’s very attractive valuation and positive financial trends are tempered by average quality and mild technical headwinds. Investors are advised to maintain positions while keeping a close eye on upcoming earnings and market developments to reassess the stock’s outlook.

Key Metrics at a Glance (As of 11 January 2026)

• Mojo Score: 51.0 (Hold)


• Market Cap: Small Cap


• Debt to Equity Ratio: 0.0 (Low)


• Net Sales Growth (5 years CAGR): 11.53%


• Operating Profit Growth (5 years CAGR): 8.35%


• PAT Growth (Latest 6 months): 26.36%


• ROCE (Half Year): 23.45%


• ROE: 19.9%


• Price to Book Value: 2.8


• PEG Ratio: 0.5


• Dividend Yield: 3.6%


• Promoter Holding: 64.58% (Increased by 2.23% last quarter)

Investor Takeaway

Veedol Corporation Ltd’s current rating and financial profile suggest it is a stock for investors who favour stability and value rather than rapid growth or momentum plays. The company’s solid profitability and attractive valuation provide a cushion against market volatility, while the mild technical weakness advises patience. Monitoring future quarterly results and sector developments will be crucial for investors considering adjustments to their holdings.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →