Calcom Vision shows strong growth, receives 'Hold' rating

Calcom Vision, a microcap company in the consumer electronics industry, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes as the company has shown healthy long-term growth, with net sales increasing by an annual rate of 34.18% and operating profit at 46.82%.
Technically, the stock is in a bullish range and has shown improvement from a mildly bullish trend on 27-Dec-23. Multiple factors such as Bollinger Band, KST, and OBV are also indicating a bullish trend for the stock.

The majority shareholders of Calcom Vision are the promoters, which is a positive sign for investors. The company has also delivered market-beating performance in the long term, outperforming BSE 500 in the last 3 years, 1 year, and 3 months.

However, the company did face some negative results in September 2023, with a decline in PAT (9M) at Rs 1.96 crore, a decrease of -47.45%. The PBDIT (Q) was also at its lowest at Rs 1.93 crore, and the operating profit to net sales (Q) was at its lowest at 4.93%.

Despite these negative results, Calcom Vision has a ROCE of 11.3, indicating an expensive valuation with a 2.8 enterprise value to capital employed. However, the stock is currently trading at a discount compared to its average historical valuations.

In the past year, while the stock has generated a return of 37.03%, its profits have only risen by 6.4%, resulting in a high PEG ratio of 57.5. Overall, MarketsMOJO's 'Hold' rating on Calcom Vision suggests a neutral stance for investors, with a focus on the company's long-term growth potential.