Vippy Spinpro Receives 'Hold' Rating from MarketsMOJO, Shows Positive Results in Recent Quarter

Vippy Spinpro, a microcap textile company, has recently received a 'Hold' rating from MarketsMOJO on September 3rd, 2024. This downgrade is due to the company's low Debt to Equity ratio, which is currently at 0.35 times on average.
However, the company has shown positive results in the quarter ending June 2024. Its Profit After Tax (HY) has increased to Rs 4.62 crore and its Profit Before Tax Less Other Income (Q) has grown by 68.7% to Rs 2.10 crore. Additionally, its Net Sales (Q) have reached a record high of Rs 70.14 crore.

Technically, the stock is in a Mildly Bullish range with multiple factors, such as MACD, KST, and DOW, indicating a bullish trend. Furthermore, with a ROCE of 5.7, the stock is attractively valued with a 1.2 Enterprise value to Capital Employed. It is also trading at a discount compared to its average historical valuations.

However, the company has shown poor long-term growth with an annual rate of only 3.79% in Operating Profit over the last 5 years. In the last year, the stock has underperformed the market, generating a return of 22.39% compared to the market's (BSE 500) return of 38.66%.

It is worth noting that the majority shareholders of Vippy Spinpro are the promoters themselves. This may indicate their confidence in the company's future prospects.

Overall, while the stock may not be a strong buy at the moment, it may be worth considering for long-term investment due to its attractive valuation and potential for future growth. However, investors should also be aware of the company's underperformance in the past year and its slow long-term growth.