MarketsMOJO Upgrades Virgo Global to 'Hold' After Positive Results and Bullish Technical Trend

MarketsMOJO, a leading stock analysis and research firm, has recently upgraded its stock call on Virgo Global to 'Hold'. This upgrade comes after the company has declared positive results for the last 7 consecutive quarters, with a debtors turnover ratio of 11.27 times and a net sales growth of 28.5%. Additionally, the company's PBDIT (Profit Before Depreciation, Interest, and Taxes) has reached its highest at Rs 0.61 crore.
Technically, the stock is in a bullish range and the technical trend has improved from mildly bullish to bullish on 23-Apr-24. Multiple factors such as MACD, Bollinger Band, and OBV are also indicating a bullish trend for the stock.

However, there are some weak fundamental factors to consider. The company has a weak long-term fundamental strength with an average Return on Capital Employed (ROCE) of 7.55%. Its operating profit has only grown at an annual rate of 6.81% over the last 5 years, indicating poor long-term growth. The company also has a high Debt to EBITDA ratio of -1.00 times, which shows a low ability to service debt.

In terms of valuation, the stock is currently trading at a premium compared to its historical average. With an ROCE of 3.1, it has a very expensive valuation with a 9.5 Enterprise value to Capital Employed. Additionally, while the stock has generated a return of 31.72% over the past year, its profits have fallen by -107.9%.

Overall, MarketsMOJO's upgrade to a 'Hold' call on Virgo Global takes into account both the positive and negative factors of the company. Investors should carefully consider these factors before making any investment decisions.