Venkys (India) Upgraded to 'Hold' Rating by MarketsMOJO, Strong Financials and Potential for Growth

Venkys (India), a smallcap FMCG company, has recently been upgraded to a 'Hold' rating by MarketsMOJO. This decision is based on various factors, including the company's strong ability to service debt with a low Debt to EBITDA ratio of 0.28 times. Additionally, the company's PAT (9M) has seen a significant increase at Rs 59.66 Cr and its PBDIT (Q) is at its highest at Rs 50.03 Cr. The operating profit to net sales (Q) is also at its highest at 5.58%.
Technically, the stock is currently in a Mildly Bullish range and has shown improvement from a Mildly Bearish trend on 24-Jul-24. Multiple factors, such as MACD, Bollinger Band, and KST, indicate a bullish trend for the stock.

However, with an ROE of 5.8, the stock is currently fairly valued with a 2 Price to Book Value. It is trading at a premium compared to its average historical valuations. In the past year, the stock has generated a return of 0.65%, while its profits have risen by 12.2%. The PEG ratio of the company is 2.8.

On the downside, Venkys (India) has shown poor long-term growth with an annual rate of -26.70% for operating profit over the last 5 years. Additionally, despite its size, domestic mutual funds hold only 0.15% of the company, which could indicate a lack of confidence in the company's business or its current stock price.

In the last 1 year, the stock has underperformed the market with a return of 0.65%, compared to the market (BSE 500) returns of 35.30%. Overall, while Venkys (India) shows potential for growth with its recent upgrades and strong financials, it is important for investors to consider all factors before making any investment decisions.