Current Rating and Its Significance
The Strong Sell rating assigned to Vivimed Labs. indicates a cautious stance for investors, signalling that the stock currently exhibits multiple risk factors that outweigh potential rewards. This rating is based on a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. Each of these factors contributes to the overall assessment, helping investors understand the underlying reasons behind the recommendation.
Quality Assessment
As of 24 December 2025, Vivimed Labs. demonstrates below-average quality metrics. The company has not declared financial results in the last six months, which raises concerns about transparency and operational stability. Its ability to service debt is notably weak, with a Debt to EBITDA ratio standing at a high 12.57 times, indicating significant leverage and potential liquidity stress. Furthermore, the average Return on Equity (ROE) is a modest 1.75%, reflecting low profitability relative to shareholders’ funds. These factors collectively suggest that the company’s fundamental strength is fragile, which is a critical consideration for investors seeking stable and growing businesses.
Valuation Perspective
The valuation of Vivimed Labs. is currently classified as risky. The stock trades at levels that are not supported by its recent financial performance or growth prospects. The absence of recent results and the negative trajectory in profitability have contributed to this assessment. Over the past year, the company’s profits have declined sharply by 267.9%, while the stock price has remained stagnant, delivering a 0.00% return. This disconnect between valuation and fundamentals suggests that the market perceives significant downside risk, reinforcing the Strong Sell rating.
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- - Fundamental Analysis
- - Technical Signals
- - Peer Comparison
Financial Trend Analysis
The financial trend for Vivimed Labs. is negative as of 24 December 2025. The company reported a loss in the half-year ended June 2023, with a PAT of ₹-281.57 crores, representing a decline of 34.93% compared to previous periods. The debt-equity ratio remains alarmingly high at 9.60 times, indicating a heavy reliance on borrowed funds. Additionally, the debtors turnover ratio is low at 2.44 times, suggesting inefficiencies in collecting receivables. These indicators point to deteriorating financial health and operational challenges, which weigh heavily on the stock’s outlook.
Technical Outlook
From a technical perspective, Vivimed Labs. is mildly bearish. The stock experienced a significant one-day decline of 4.97% on 24 December 2025, reflecting negative market sentiment. The technical grade assigned is consistent with the broader fundamental weaknesses and valuation risks. Investors should be cautious as the stock’s price action does not currently signal a reversal or recovery, reinforcing the recommendation to avoid or exit positions.
Summary for Investors
In summary, the Strong Sell rating for Vivimed Labs. is justified by a combination of weak quality metrics, risky valuation, negative financial trends, and bearish technical signals. Investors should interpret this rating as a warning that the stock carries substantial risks and may not be suitable for those seeking capital preservation or growth. The company’s current financial and operational challenges suggest that a cautious approach is warranted until there is clear evidence of improvement.
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Understanding the Mojo Score and Grade
Vivimed Labs. currently holds a Mojo Score of 9.0, which corresponds to a Strong Sell grade. This score is a composite measure derived from the company’s fundamental quality, valuation, financial trend, and technical indicators. A higher Mojo Score in this context signals elevated risk and a recommendation to avoid the stock. The grade was assigned on 22 December 2025, reflecting a thorough reassessment of the company’s position in light of recent developments and data as of 24 December 2025.
Market Capitalisation and Sector Context
Vivimed Labs. is classified as a microcap stock, which typically entails higher volatility and risk compared to larger, more established companies. The absence of a defined sector classification further complicates comparative analysis, making it essential for investors to rely on detailed fundamental and technical evaluations. The current Strong Sell rating underscores the need for prudence when considering exposure to microcap stocks with uncertain operational and financial profiles.
Investor Takeaway
For investors, the key takeaway is that Vivimed Labs. presents significant challenges at present. The combination of poor financial results, high leverage, weak operational metrics, and negative technical signals suggests that the stock is not positioned favourably for near-term appreciation. Those holding the stock should consider risk mitigation strategies, while prospective investors are advised to await clearer signs of recovery before committing capital.
Conclusion
Vivimed Labs.’ Strong Sell rating by MarketsMOJO, last updated on 22 December 2025, reflects a comprehensive evaluation of the company’s current financial and market standing as of 24 December 2025. The rating serves as a cautionary signal to investors, highlighting the risks associated with the stock’s quality, valuation, financial trends, and technical outlook. Careful analysis and ongoing monitoring are recommended for those with interests in this microcap stock.
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