Vibrant Global Capital Receives 'Sell' Rating from MarketsMOJO Due to Weak Financials

Vibrant Global Capital, a microcap finance company, has recently received a 'Sell' rating from MarketsMOJO on July 15, 2024. This downgrade is due to the company's weak long-term fundamental strength, as it has been facing operating losses.

In the last quarter of March 2024, Vibrant Global Capital reported a significant decrease in its profits, with a PBT (profit before tax) less OI (other income) of -4.61 crore, a decrease of 191.29%. Its PAT (profit after tax) also saw a decline of 67.2%, standing at 0.75 crore. The PBDIT (profit before depreciation, interest, and taxes) was at its lowest at -2.86 crore.

Apart from these financial factors, the stock is currently in a mildly bullish range and has shown multiple bullish indicators such as MACD, KST, and OBV. Additionally, with a ROE (return on equity) of 31.2, the stock is considered to have a very attractive valuation with a price to book value of 1.3. It is also trading at a fair value compared to its historical valuations.

In the past year, Vibrant Global Capital's stock has outperformed the market (BSE 500) with a return of 85.95%. However, its profits have only increased by 711.3%, resulting in a PEG (price/earnings to growth) ratio of 0, indicating a potential overvaluation.

The majority shareholders of Vibrant Global Capital are its promoters, which can be seen as a positive sign for the company's stability and growth. Despite the recent downgrade, the stock has shown a market-beating performance, making it an attractive option for investors. However, it is important to carefully consider all the factors before making any investment decisions.