Visco Trade Associates Receives 'Hold' Rating from MarketsMOJO, Shows Strong Long-Term Growth but Poor Management Efficiency and Debt Concerns

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, with net sales increasing by 47.55% annually and operating profit by 134.71%. However, the technical trend for the stock is currently sideways, indicating no clear price momentum.
Despite this, the stock is trading at a discount compared to its average historical valuations and has a very attractive valuation with a 1.6 enterprise value to capital employed. In the past year, while the stock has generated negative returns of -26.07%, its profits have risen by 564.4%, resulting in a low PEG ratio of 0.2. The majority shareholders of the company are the promoters.

However, the company has shown poor management efficiency with a low return on capital employed of 1.37%. This signifies low profitability per unit of total capital, including equity and debt. Additionally, the company has a high debt to EBITDA ratio of 4.19 times, indicating a low ability to service debt. The return on equity is also low at 1.93%, indicating low profitability per unit of shareholders' funds.

In the latest quarter, the company's results were flat, with the lowest net sales of Rs 22.54 crore and the lowest debtors turnover ratio of 0.00 times. The interest expense was also the highest at Rs 2.00 crore. Furthermore, in the last year, the stock has underperformed the market, with negative returns of -26.07% compared to the market's positive returns of 27.99%.

Overall, while Visco Trade Associates has shown strong long-term growth, its technical trend is currently sideways, and the company has shown poor management efficiency and a low ability to service debt. Investors may want to hold onto their positions for now and monitor the company's performance closely.