Vivid Global Industries Ltd is Rated Hold

Current Rating and Its Significance

The 'Hold' rating assigned to Vivid Global Industries Ltd indicates a neutral stance for investors. It suggests that while the stock may not present immediate strong buy opportunities, it is also not positioned for a sell recommendation. Investors should consider holding existing positions and closely monitor the company’s developments. This rating reflects a balance of strengths and weaknesses across key evaluation parameters, signalling a cautious but steady outlook.

Quality Assessment: Below Average Fundamentals

As of 24 December 2025, Vivid Global Industries Ltd exhibits below average quality metrics. The company has experienced a negative compound annual growth rate (CAGR) of -18.17% in operating profits over the past five years, indicating challenges in sustaining profitability growth. Additionally, the firm’s ability to service its debt remains weak, with an average EBIT to interest coverage ratio of just 0.74, which is below the comfortable threshold for financial stability.

The return on equity (ROE) averaged 4.84%, reflecting modest profitability relative to shareholders’ funds. This low ROE suggests that the company is generating limited returns on invested capital, which may concern investors seeking robust earnings growth. Despite these challenges, the company reported positive quarterly results in September 2025, including its highest operating cash flow for the year at ₹2.18 crores, net sales of ₹13.92 crores, and PBDIT of ₹0.59 crores, signalling some operational improvements.

Valuation: Fairly Priced with Discount to Peers

Currently, the company’s valuation metrics indicate a fair price level. Vivid Global Industries Ltd trades at a price-to-book (P/B) ratio of approximately 1.1, which is modest and suggests the stock is not overvalued relative to its book value. This valuation is at a discount compared to its peers’ historical averages, potentially offering value to investors willing to look beyond short-term performance.

The company’s ROE of 3.2% further supports this fair valuation, as it aligns with the moderate profitability profile. Despite the stock’s negative return of -10.18% over the past year, the company’s profits have increased by 19% during the same period, resulting in a price/earnings to growth (PEG) ratio of 0.5. This low PEG ratio may indicate undervaluation relative to earnings growth potential, a factor investors might consider when evaluating the stock’s prospects.

Financial Trend: Positive Signals Amidst Challenges

The financial trend for Vivid Global Industries Ltd shows a mixed picture. While the long-term fundamentals have been weak, recent quarterly results demonstrate positive momentum. The highest operating cash flow and net sales recorded in the September 2025 quarter highlight operational improvements. However, the company’s overall ability to generate consistent profit growth remains constrained by its weak debt servicing capacity and modest returns on equity.

Investors should note that the majority of the company’s shares are held by non-institutional shareholders, which may affect liquidity and market dynamics. Furthermore, the stock has consistently underperformed the BSE500 benchmark over the last three years, with annual returns lagging behind the broader market. This underperformance underscores the need for cautious evaluation before increasing exposure.

Technical Outlook: Bullish Momentum

From a technical perspective, Vivid Global Industries Ltd currently exhibits a bullish grade. The stock has shown positive short-term price movements, with a 1-day gain of 2.98%, a 1-week increase of 5.89%, and a 1-month rise of 5.82%. Although the 3-month return is slightly negative at -0.33%, the 6-month return is positive at 2.80%, indicating some recovery in price momentum.

This bullish technical stance suggests that the stock may be gaining upward traction in the near term, which could attract traders and investors looking for momentum plays. However, the year-to-date return remains negative at -11.81%, reflecting broader challenges that the company faces in delivering sustained value to shareholders.

Investor Takeaway

For investors, the 'Hold' rating on Vivid Global Industries Ltd reflects a cautious approach. The company’s below average quality metrics and weak long-term fundamentals suggest limited upside from a fundamental standpoint. However, fair valuation and recent positive financial trends provide some support for maintaining current holdings rather than exiting positions.

The bullish technical indicators may offer short-term trading opportunities, but the stock’s consistent underperformance against benchmarks and modest profitability warrant careful monitoring. Investors should weigh these factors alongside their risk tolerance and investment horizon before making decisions.

Overall, Vivid Global Industries Ltd presents a mixed profile with potential for recovery tempered by structural challenges. The 'Hold' rating encourages a balanced view, advising neither aggressive buying nor selling at this stage.

Summary of Key Metrics as of 24 December 2025

• Mojo Score: 54.0 (Hold Grade)


• Market Capitalisation: Microcap


• Operating Profit CAGR (5 years): -18.17%


• EBIT to Interest Coverage Ratio: 0.74 (weak)


• Average Return on Equity: 4.84%


• Price to Book Value: 1.1 (fair valuation)


• PEG Ratio: 0.5 (indicating undervaluation relative to growth)


• Stock Returns: 1D +2.98%, 1W +5.89%, 1M +5.82%, 3M -0.33%, 6M +2.80%, YTD -11.81%, 1Y -10.18%

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