Vikram Thermo (India) Receives 'Hold' Rating from MarketsMOJO Based on Strong Financials and Consistent Growth

Vikram Thermo (India) is a microcap company in the chemicals industry. Recently, MarketsMOJO upgraded their stock call on the company to 'Hold' on October 8th, 2024. This upgrade is based on several factors that indicate a positive outlook for the company.
One of the main reasons for the 'Hold' rating is the company's low Debt to Equity ratio, which is at an average of 0.01 times. This shows that the company has a healthy financial position and is not heavily reliant on debt.

In addition, Vikram Thermo has shown consistent long-term growth, with an annual operating profit growth rate of 36.40%. This is a positive sign for investors as it indicates the company's ability to generate profits over time.

The company also reported positive results in June 2024, with the highest PBT LESS OI(Q) at Rs 11.02 crore and PAT(Q) at Rs 8.99 crore. This further supports the 'Hold' rating as it shows the company's strong performance in the recent quarter.

From a technical standpoint, the stock is currently in a Mildly Bullish range and has shown improvement from a Sideways trend on October 8th, 2024. This is supported by multiple factors such as Bollinger Band, DOW, and OBV.

Moreover, Vikram Thermo has consistently outperformed the BSE 500 index in the last 3 annual periods and has generated a return of 62.86% in the last year. However, with a ROE of 25.4 and a Price to Book Value of 4.7, the stock is considered to be very expensive. This may be a concern for some investors as the stock is trading at a premium compared to its historical valuations.

It is also worth noting that despite being a microcap company, domestic mutual funds hold only 0% of the company. This could indicate that they are not comfortable with the current price or the business, as domestic mutual funds have the capability to conduct in-depth research on companies.

In conclusion, while Vikram Thermo (India) has shown positive growth and performance, the 'Hold' rating suggests that investors should carefully consider their options before making any investment decisions. The company's high valuation and low interest from domestic mutual funds may be factors to consider.