Understanding the Current Rating
The Strong Sell rating assigned to Vivimed Labs. indicates a cautious stance for investors, suggesting that the stock currently exhibits significant risks and challenges that outweigh potential rewards. This rating is derived from a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. Each of these factors contributes to the overall assessment and helps investors understand the rationale behind the recommendation.
Quality Assessment
As of 04 January 2026, Vivimed Labs. demonstrates a below-average quality grade. The company’s fundamental strength is weak, largely due to the absence of declared results in the past six months, which raises concerns about transparency and operational stability. Additionally, the company’s ability to service its debt is limited, with a high Debt to EBITDA ratio of 12.57 times, signalling elevated financial risk. The average Return on Equity (ROE) stands at a modest 1.75%, reflecting low profitability relative to shareholders’ funds. These factors collectively indicate that the company’s operational and financial quality is currently under strain.
Valuation Considerations
The valuation grade for Vivimed Labs. is classified as risky. The stock is trading at valuations that are higher than its historical averages, which may not be justified given the company’s recent financial performance. Investors should be wary of the premium pricing in light of the company’s deteriorating fundamentals and uncertain outlook. The lack of recent financial disclosures further complicates the valuation picture, making it difficult to ascertain a fair price based on current earnings or cash flow metrics.
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- - Fundamental Analysis
- - Technical Signals
- - Peer Comparison
Financial Trend Analysis
The financial grade for Vivimed Labs. is negative, reflecting a deteriorating trend in key financial metrics. As of 04 January 2026, the company reported a loss in the half-year ended June 2023, with a Profit After Tax (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 debt financing. Furthermore, the debtors turnover ratio is low at 2.44 times, suggesting inefficiencies in receivables management. Over the past year, the stock has delivered a return of 0.00%, while profits have fallen by 267.9%, underscoring the financial challenges faced by the company.
Technical Outlook
Technically, Vivimed Labs. holds a mildly bullish grade, which suggests some short-term positive momentum despite the broader fundamental weaknesses. However, this mild bullishness is tempered by significant volatility, as evidenced by the stock’s recent price movements. The stock declined by 9.97% in a single day and has fallen 26.58% over the past week. Year-to-date, the stock is down 14.46%. These fluctuations highlight the stock’s risk profile and the need for investors to exercise caution.
What This Rating Means for Investors
The Strong Sell rating signals that Vivimed Labs. is currently not a favourable investment option based on its present fundamentals and financial health. Investors should consider the elevated debt levels, weak profitability, and lack of recent financial disclosures as significant red flags. While the technical indicators show some mild bullishness, this is insufficient to offset the underlying risks. For those holding the stock, it may be prudent to reassess their positions in light of these factors. Prospective investors should approach with caution and seek further clarity on the company’s operational outlook before committing capital.
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Summary
In summary, Vivimed Labs. is currently rated Strong Sell by MarketsMOJO, reflecting significant concerns across quality, valuation, and financial trend parameters. The company’s high leverage, poor profitability, and lack of recent financial disclosures contribute to this cautious stance. Although technical indicators show some mild bullishness, the overall risk profile remains elevated. Investors should carefully weigh these factors and monitor any forthcoming updates from the company before making investment decisions.
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