Vivanta Industries Receives 'Hold' Rating Upgrade

Vivanta Industries, a microcap company in the plastic products industry, has recently received a 'Hold' rating from MarketsMOJO on December 4, 2023. This upgrade comes after the company has shown positive results for the last four consecutive quarters.
In the half-yearly results, the company's net sales have grown by an impressive 2,970.67%, reaching Rs 23.03 crore. The operating cash flow has also seen a significant increase, reaching its highest at Rs 1.67 crore. Additionally, the debtors turnover ratio has also reached its highest at 2.07 times.

Technically, the stock is currently in a mildly bullish range and has shown improvement since December 4, 2023, generating a return of -2.2%. The key technical factor, KST, has been consistently bullish since the same date.

With a ROCE of 7.3, the company has a fair valuation and a 1.9 enterprise value to capital employed. The stock is currently trading at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 131.17%, while its profits have risen by 106%. The PEG ratio of the company is also at a low 0.1.

Despite its market-beating performance, Vivanta Industries has weak long-term fundamental strength with an average ROCE of 4.41%. The company's ability to service its debt is also weak, with a poor EBIT to interest ratio of 0.67.

Overall, while the stock has shown impressive returns in the past year, it is important to consider the company's fundamental strength and debt-servicing ability before making any investment decisions. MarketsMOJO's 'Hold' rating reflects a neutral stance on the stock, based on its current performance and technical trends.