Current Rating and Its Significance
MarketsMOJO’s Strong Sell rating for Vivo Bio Tech Ltd. indicates a cautious stance for investors, suggesting that the stock is expected to underperform relative to the broader market and its sector peers. This rating is based on a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. The Strong Sell grade reflects concerns about the company’s fundamental strength and market momentum, signalling that investors should carefully consider the risks before committing capital.
Rating Update Context
The rating was revised to Strong Sell on 19 January 2026, with the Mojo Score declining by 5 points from 31 to 26. This adjustment reflects a reassessment of the company’s prospects amid evolving market conditions and financial performance. It is important to note that while the rating change date is 19 January, all financial data and returns referenced here are current as of 03 February 2026, ensuring an up-to-date perspective for investors.
Quality Assessment
As of 03 February 2026, Vivo Bio Tech Ltd. exhibits below-average quality metrics. The company’s long-term fundamental strength is weak, with a compound annual growth rate (CAGR) in net sales of -0.84% over the past five years. This negative growth trend highlights challenges in expanding revenue streams. Additionally, the company’s ability to service debt is limited, with an average EBIT to interest ratio of just 1.84, indicating vulnerability to financial stress. Profitability is also subdued, as reflected by an average return on equity (ROE) of 6.60%, which is modest for the pharmaceuticals and biotechnology sector. These factors collectively contribute to the low quality grade and underpin the cautious rating.
Valuation Perspective
Despite the weak fundamentals, the valuation grade for Vivo Bio Tech Ltd. is very attractive as of today. This suggests that the stock is trading at a price level that may offer value relative to its earnings and asset base. However, attractive valuation alone does not offset the risks posed by poor quality and financial trends. Investors should weigh the potential for value capture against the company’s operational challenges and market risks.
Financial Trend Analysis
The financial trend for Vivo Bio Tech Ltd. is currently flat, indicating stagnation in key financial metrics. The latest results for the nine months ended September 2025 show a significant decline in profitability, with a PAT of ₹3.27 crores representing a contraction of 46.74%. Return on capital employed (ROCE) is low at 7.95%, signalling limited efficiency in generating returns from invested capital. The debtors turnover ratio stands at 3.54 times, which is on the lower side, suggesting slower collection cycles and potential liquidity concerns. These flat to negative trends reinforce the rationale behind the Strong Sell rating.
Technical Outlook
From a technical standpoint, the stock is bearish as of 03 February 2026. Price momentum indicators and recent trading patterns reflect downward pressure. The stock has declined by 3.75% in the last trading day and has posted negative returns over multiple time frames: -13.13% in one month, -15.72% in three months, -16.54% over six months, and a steep -35.95% over the past year. This underperformance is notable when compared to the broader BSE500 index, which the stock has lagged over the last three years, one year, and three months. The bearish technical grade aligns with the overall negative sentiment surrounding the stock.
Performance Summary and Investor Implications
Currently, Vivo Bio Tech Ltd. is classified as a microcap company within the Pharmaceuticals & Biotechnology sector. Its market capitalisation remains modest, and the stock’s recent performance has been disappointing. The combination of weak long-term growth, poor profitability, flat financial trends, and bearish technical signals justifies the Strong Sell rating. For investors, this rating serves as a warning to exercise caution and consider the elevated risks before investing. The stock’s very attractive valuation may tempt value-oriented investors, but the fundamental and technical headwinds suggest that downside risks remain significant.
Looking Ahead
Investors should monitor upcoming quarterly results and any strategic initiatives by Vivo Bio Tech Ltd. that could improve operational efficiency or financial health. Improvements in sales growth, profitability, and debt servicing capacity would be necessary to alter the current negative outlook. Until such signs emerge, the Strong Sell rating reflects a prudent stance based on the company’s present fundamentals and market behaviour.
Handpicked from 50, scrutinized by experts – Our recent selection, this Mid Cap from Bank - Public, is already delivering results. Don't miss next month's pick!
- - Expert-scrutinized selection
- - Already delivering results
- - Monthly focused approach
Summary of Key Metrics as of 03 February 2026
Vivo Bio Tech Ltd.’s stock returns illustrate the challenging environment: a 1-day decline of 3.75%, a 1-week gain of 4.45%, but negative returns over longer periods including -13.13% in 1 month and -35.95% over 1 year. The company’s financial health is marked by a weak EBIT to interest ratio of 1.84 and a low ROE of 6.60%. The flat financial trend and bearish technical outlook further compound concerns. While valuation remains very attractive, the overall assessment supports the Strong Sell rating.
Investor Takeaway
For investors, the Strong Sell rating from MarketsMOJO signals that Vivo Bio Tech Ltd. currently faces significant headwinds that outweigh potential valuation benefits. The stock’s weak quality, flat financial trends, and negative technical momentum suggest that it may continue to underperform in the near term. Caution and thorough due diligence are advised before considering exposure to this microcap pharmaceutical and biotechnology stock.
Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →
