Vidli Restaurants Downgraded to 'Sell' by MarketsMOJO on November 7, 2024.

Vidli Restaurants, a microcap company in the hotel, resort, and restaurant industry, has recently been downgraded to a 'Sell' by MarketsMOJO on November 7, 2024. This decision was based on the company's weak ability to service its debt, with a poor EBIT to Interest (avg) ratio of 1.90. Additionally, the company has a low profitability per unit of shareholders funds, with a Return on Equity (avg) of 9.58%.
In terms of recent performance, Vidli Restaurants saw flat results in June 2024 and has underperformed the market in the last year, with a return of only 9.36% compared to the market's 31.95% return. The stock is also trading at a discount compared to its average historical valuations, with an expensive valuation of 2.7 Enterprise value to Capital Employed and a ROCE of 5.4.

On the positive side, the company has shown healthy long-term growth with an annual growth rate of 89.90% in Net Sales and 88.41% in Operating profit. However, the technical trend for the stock is currently sideways, indicating no clear price momentum. The Bollinger Band, a key technical factor, has also been sideways since November 7, 2024.

In terms of ownership, the promoter holding has decreased this quarter and now stands at 55.32% of the company. Overall, while Vidli Restaurants may have potential for long-term growth, current factors suggest that it may not be a strong investment option at this time. Investors should carefully consider all factors before making any decisions regarding this microcap company.