Visco Trade Associates Experiences Revision in Score Amid Flat Q2 FY24-25 Performance

Visco Trade Associates, a microcap player in the trading industry, has recently experienced a revision in its score by MarketsMOJO, reflecting ongoing challenges in its financial performance. The company's latest financial results for the second quarter of FY24-25 reveal a stagnation in net sales, which were recorded at Rs 22.54 crore, indicating a significant low point for the firm.
Key financial metrics paint a concerning picture for Visco Trade. The company's Return on Capital Employed (ROCE) is notably low at 1.37%, suggesting inefficiencies in management and profitability. Furthermore, a high Debt to EBITDA ratio of 4.19 times raises alarms regarding its capacity to meet debt obligations. The Return on Equity (ROE) is also underwhelming at just 1.93%, highlighting the difficulties the company faces in delivering returns to its shareholders.

From a technical standpoint, Visco Trade's stock is currently positioned in a mildly bearish range, having shifted from a previously sideways trend earlier in January 2025. This has resulted in a negative return of -2.57%. Over the past year, the stock has notably underperformed the broader market, with a decline of -27.71%, contrasting sharply with the BSE 500's gain of 13.45%.

Despite these hurdles, it is worth noting that Visco Trade has demonstrated healthy long-term growth in both net sales and operating profit. In light of its recent performance and adjustments in evaluation, the stock has been added to MarketsMOJO's list, indicating a need for investors to closely monitor its future developments.