MarketsMOJO downgrades Vivo Bio Tech to 'Sell' due to weak fundamentals and low net sales

Vivo Bio Tech, a microcap pharmaceutical company, has recently received a 'Sell' rating from MarketsMOJO. 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 in September 2023 were at their lowest, at just Rs 9.26 crore.
While the stock is currently in a mildly bullish range, technical factors such as MACD and Bollinger Band also indicate a bullish trend. However, with a ROCE of 11, the company's valuation is considered very attractive with a 1.1 enterprise value to capital employed. Additionally, the stock is currently trading at a discount compared to its average historical valuations.

Despite generating a return of 40.03% in the past year, the company's profits have only risen by 139.3%, resulting in a PEG ratio of 0.2. It is worth noting that the majority of shareholders in Vivo Bio Tech are non-institutional investors.

Overall, while the stock may have shown some positive growth in the past year, the company's weak long-term fundamentals and low net sales raise concerns for investors. MarketsMOJO's 'Sell' rating serves as a cautionary call for those considering investing in Vivo Bio Tech.