Vivo Bio Tech Receives 'Sell' Rating

Vivo Bio Tech ., a microcap pharmaceutical company, has recently received a 'Sell' rating from MarketsMOJO on November 20, 2023. This downgrade is based on the company's weak long-term fundamental strength, with a -2.81% CAGR growth in net sales over the last 5 years. In fact, their net sales for the quarter ending September 2023 were at a low of Rs 9.26 crore.
In addition, the stock has underperformed the market in the last year, with a return of only 0.83% compared to the market's return of 16.72% (BSE 500). However, there are some technical factors that indicate a mildly bullish trend for the stock. The Bollinger Band has been bullish since November 13, 2023, which could potentially lead to a short-term increase in stock price.

Moreover, Vivo Bio Tech . currently has a very attractive valuation with a ROCE of 11 and an enterprise value to capital employed ratio of 1. This means that the stock is trading at a discount compared to its average historical valuations. Additionally, the company's profits have risen by 139.3% in the past year, while the stock has only generated a return of 0.83%. This gives the company a PEG ratio of 0.1, which is considered to be undervalued.

It is worth noting that the majority of shareholders in Vivo Bio Tech . are non-institutional investors. This could potentially lead to higher volatility in the stock price, as non-institutional investors tend to have a shorter investment horizon.

Overall, while Vivo Bio Tech . may have some technical factors indicating a potential short-term increase in stock price, the company's weak long-term fundamentals and underperformance in the market make it a 'Sell' according to MarketsMOJO. Investors should carefully consider these factors before making any investment decisions.