Vikram Thermo (India) Ltd is Rated Sell

Current Rating and Its Implications for Investors

The 'Sell' rating assigned to Vikram Thermo (India) Ltd indicates a cautious stance for investors considering this stock. This recommendation is based on a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. The rating suggests that, given the present fundamentals and market conditions, investors may want to avoid initiating new positions or consider reducing exposure to this microcap commodity chemicals company.

Quality Assessment: Average Fundamentals

As of 25 December 2025, Vikram Thermo exhibits an average quality grade. The company’s net sales have grown at a modest annual rate of 14.78% over the past five years, which reflects moderate growth but falls short of robust expansion seen in higher-quality peers. Return on Equity (ROE) stands at a healthy 24.1%, signalling efficient use of shareholder capital. However, the overall quality assessment remains tempered by the company’s limited scale and lack of significant institutional backing, with domestic mutual funds holding no stake in the stock. This absence of mutual fund interest may indicate concerns about the company’s business model or valuation at current levels.

Valuation: Very Expensive Relative to Peers

Valuation is a critical factor behind the 'Sell' rating. Vikram Thermo is currently trading at a Price to Book (P/B) ratio of 3.8, which is considered very expensive compared to its historical averages and peer group valuations. The premium valuation is not fully supported by the company’s growth prospects or profitability trends. Despite a 5.9% increase in profits over the past year, the stock has delivered a negative return of -4.54% over the same period, underperforming the broader BSE500 index, which gained 6.20%. The company’s Price/Earnings to Growth (PEG) ratio of 2.6 further suggests that the stock is priced for growth that may be challenging to realise, signalling potential overvaluation risks for investors.

Financial Trend: Positive but Limited Momentum

The financial trend for Vikram Thermo is currently positive, with profits rising by 5.9% over the last year. However, this improvement has not translated into strong stock performance, as the share price has declined by 4.54% over the same period. The company’s sales growth, while steady, is not accelerating sufficiently to justify the elevated valuation. Additionally, the stock’s year-to-date return of -5.71% and a one-month decline of 4.35% highlight recent volatility and investor caution. These mixed signals suggest that while the company is generating earnings growth, it may not be enough to drive significant shareholder value in the near term.

Technical Analysis: Mildly Bearish Signals

From a technical perspective, Vikram Thermo’s stock exhibits mildly bearish characteristics. The short-term price movements show some recovery, with a 3.35% gain on the most recent trading day and a 2.93% increase over the past week. However, the overall technical grade remains subdued, reflecting uncertainty and lack of strong upward momentum. This technical backdrop reinforces the cautious stance implied by the 'Sell' rating, suggesting that the stock may face resistance in breaking out to higher levels without fundamental improvements.

Market Position and Peer Comparison

Vikram Thermo operates within the commodity chemicals sector as a microcap company. Its market capitalisation and scale limit its visibility and liquidity compared to larger peers. The stock’s underperformance relative to the BSE500 index over the past year underscores the challenges it faces in delivering competitive returns. Furthermore, the absence of domestic mutual fund holdings may reflect a lack of conviction among institutional investors, who typically conduct thorough due diligence before committing capital. This lack of institutional support can contribute to subdued demand and price pressure in the stock.

Summary for Investors

In summary, Vikram Thermo (India) Ltd’s current 'Sell' rating reflects a combination of average quality fundamentals, very expensive valuation, positive but modest financial trends, and mildly bearish technical signals. The stock’s premium pricing relative to earnings and book value, coupled with underwhelming returns and limited institutional interest, suggests that investors should exercise caution. While the company demonstrates some earnings growth and operational efficiency, these factors do not currently outweigh valuation concerns and market underperformance.

For investors, this rating implies that Vikram Thermo may not be an attractive buy at present levels. Those holding the stock might consider reassessing their positions in light of the company’s valuation and market dynamics. Prospective investors should monitor future developments closely, particularly any improvements in growth prospects, valuation metrics, or technical momentum that could alter the stock’s outlook.

Key Metrics as of 25 December 2025

• Mojo Score: 41.0 (Sell Grade)


• Market Capitalisation: Microcap


• Net Sales Growth (5-year CAGR): 14.78%


• Return on Equity (ROE): 24.1%


• Price to Book Value: 3.8 (Very Expensive)


• PEG Ratio: 2.6


• Stock Returns: 1 Day +3.35%, 1 Week +2.93%, 1 Month -4.35%, 3 Months -0.12%, 6 Months +5.20%, Year-to-Date -5.71%, 1 Year -4.54%


• BSE500 Index 1 Year Return: +6.20%

These figures provide a snapshot of the stock’s current standing and help contextualise the 'Sell' rating within the broader market environment.

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