Vippy Spinpro Receives 'Hold' Rating from MarketsMOJO, Shows Strong Financial Performance

Vippy Spinpro, a microcap textile company, has recently received a 'Hold' rating from MarketsMOJO on August 20, 2024. This upgrade is based on the company's low Debt to Equity ratio of 0.35 times, indicating a stable financial position.
In addition, Vippy Spinpro has shown positive results in the quarter ending June 2024, with a higher PAT (HY) of Rs 4.62 crore and a growth of 68.7% in PBT LESS OI (Q) at Rs 2.10 crore. The company's NET SALES (Q) have also reached a record high of Rs 70.14 crore.

While the technical trend for the stock is currently sideways, it has improved from a bearish trend on August 20, 2024, and has generated a return of 7.22% since then. With a ROCE of 5.7, Vippy Spinpro is considered to have an attractive valuation with a 1.2 Enterprise value to Capital Employed.

Moreover, the stock is currently trading at a discount compared to its average historical valuations. Despite generating a return of 16.27% in the past year, the company's profits have only increased by 7.1%, resulting in a PEG ratio of 2.4.

It is worth noting that the majority shareholders of Vippy Spinpro are the promoters themselves. 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 1 year, Vippy Spinpro has underperformed the market, with a return of 16.27% compared to the market's (BSE 500) return of 38.30%. While the stock may not have significant potential for future growth, it may still be a good option for investors looking for a stable and reliable investment in the textile industry.