Visco Trade Associates downgraded to 'Hold' by MarketsMOJO due to current financial performance and market trends

Visco Trade Associates, a microcap trading company, has recently been downgraded to a 'Hold' by MarketsMOJO on June 25, 2024. This decision was based on the company's current financial performance and market trends.
Despite a healthy long-term growth rate of 69.42% in Net Sales and 134.71% in Operating profit, the company's technical trend is currently sideways, indicating no clear price momentum. In fact, the technical trend has deteriorated since June 25, 2024, resulting in a -1.98% return.

On a positive note, the company has declared positive results for the last 7 consecutive quarters, with a growth in Net Sales of 32.05% in March 2024. However, the company's management efficiency is poor with a low ROCE of 1.37%, indicating low profitability per unit of total capital. Additionally, the company has a high Debt to EBITDA ratio of 4.19 times, indicating a low ability to service debt.

Furthermore, Visco Trade Associates has underperformed the market in the last year, generating negative returns of -25.29% while the market (BSE 500) has generated returns of 39.00%. This could be a cause for concern for investors.

Despite the company's attractive valuation with a 1.4 Enterprise value to Capital Employed and trading at a discount compared to its historical valuations, it is important to consider the company's current financial performance and market trends before making any investment decisions. As of now, MarketsMOJO has downgraded the stock to a 'Hold' and it is advisable to monitor the company's performance closely before making any investment decisions.