Visco Trade Associates Receives 'Hold' Rating from MarketsMOJO, Shows Strong Growth and Positive Results

Aug 23 2024 06:39 PM IST
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MarketsMojo has given the company a 'Hold' rating based on these factors. Visco Trade Associates, a microcap trading company, has received a 'Hold' rating from MarketsMojo due to its healthy long-term growth, positive financial results, and rising promoter confidence. The company has shown strong growth in net sales and operating profit, with consistently positive results for the last 8 quarters. However, concerns regarding management efficiency and high debt levels should be noted.
Visco Trade Associates, a microcap trading company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade is based on the company's healthy long-term growth, positive financial results, and rising promoter confidence.

In the past year, Visco Trade Associates has shown a strong growth in net sales, with an annual rate of 57.23%. Its operating profit has also seen a significant increase of 134.71%. The company has consistently declared positive results for the last 8 quarters, with a net sales growth of 50.74% in the last 9 months and a high operating cash flow of Rs 74.67 crore.

With a ROCE of 24.23%, Visco Trade Associates has a very attractive valuation, with an enterprise value to capital employed ratio of 1.4. The stock is currently trading at a discount compared to its historical valuations. However, it has underperformed the market in the last year, generating negative returns of -27.70%.

Despite the positive aspects, there are some concerns regarding the company's management efficiency. With a low ROCE of 1.37%, it signifies low profitability per unit of total capital. The company also has a high debt to EBITDA ratio of 4.19 times, indicating a low ability to service debt. Additionally, the stock is currently in a mildly bearish range, with multiple technical indicators showing a bearish trend.

On the bright side, promoter confidence in the company is on the rise, with an increase in their stake by 1.39% in the previous quarter. This is a positive sign for the future of the business.

In conclusion, while Visco Trade Associates has shown strong growth and positive financial results, there are some concerns regarding management efficiency and debt. Investors may want to hold onto their stocks for now and keep an eye on future developments.
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