Vivanta Industries Downgraded to 'Sell' by MarketsMOJO

Vivanta Industries, a microcap company in the plastic products industry, has recently been downgraded to a 'Sell' by MarketsMOJO. This decision was based on the company's weak long-term fundamental strength, with an average Return on Capital Employed (ROCE) of 4.41%. Additionally, the company's ability to service its debt is also a concern, with a poor EBIT to Interest (avg) ratio of 0.67.
However, there are some positive factors to consider. Vivanta Industries has declared positive results for the last 4 consecutive quarters, with a significant growth in net sales and operating cash flow. The company's debtors turnover ratio is also at its highest at 2.07 times.

From a technical standpoint, the stock is currently in a mildly bullish range and has shown improvement since 04-Dec-23, generating a return of 5.49% since then. The Bollinger Band and KST technical factors are also bullish.

In terms of valuation, Vivanta Industries has a fair valuation with a ROCE of 7.3 and an enterprise value to capital employed ratio of 2. The stock is currently trading at a discount compared to its historical valuations.

Despite the recent downgrade, Vivanta Industries has shown market-beating performance with a return of 158.76% in the last year, significantly higher than the market (BSE 500) returns of 17.25%. However, it is important to note that the company's profits have only risen by 106%, resulting in a low PEG ratio of 0.1. Investors should carefully consider these factors before making any investment decisions.