Venus Remedies Receives Upgraded Stock Call and Shows Strong Financial Performance

Venus Remedies, a microcap pharmaceutical company, has recently received an upgraded stock call from MarketsMOJO. The company's stock has been upgraded to 'Hold' on 2024-06-13.
The decision to upgrade the stock to 'Hold' is based on the company's strong ability to service its debt, with a healthy EBIT to Interest (avg) ratio of 11.70. Additionally, Venus Remedies has shown healthy long-term growth with an annual rate of 115.00% in operating profit. The company has also declared positive results for the last three consecutive quarters, with a growth of 20.98% in PAT (HY) and the highest cash and cash equivalents (HY) at Rs 68.10 crore. The company's net sales have also reached a high of Rs 195.16 crore.

Technically, the stock is in a mildly bullish range and the technical trend has improved from mildly bearish on 13-Jun-24. Multiple factors, such as MACD, Bollinger Band, and KST, indicate a bullish outlook for the stock.

With a ROE of 5.8, Venus Remedies has an attractive valuation with a price to book value of 1. The stock is currently trading at a premium compared to its average historical valuations. In the past year, the stock has generated a return of 61.85%, while its profits have risen by 7.2%. The PEG ratio of the company is 2.5.

Venus Remedies has also shown market-beating performance, with a return of 61.85% in the last year, significantly higher than the market (BSE 500) returns of 36.82%.

Despite being a microcap company, domestic mutual funds hold only 0% of the company. This may signify that they are not comfortable with the current price or the business, as domestic mutual funds have the capability to conduct in-depth on-the-ground research on companies. However, with its strong financials and market-beating performance, Venus Remedies remains a promising player in the pharmaceutical industry.