TGV Sraac, a small-cap player in the chemicals industry, has recently received an upgrade to a ‘Buy’ rating from MarketsMOJO as of January 7, 2025. The company has demonstrated a positive turnaround in its financial performance for the second quarter of FY24-25, marking a significant recovery after six consecutive quarters of negative results.
One of the standout metrics is the operating profit, which has surged at an impressive annual rate of 32.04%. The company’s operating profit to interest ratio has reached a notable 13.29 times, indicating strong financial health. Additionally, TGV Sraac has declared a dividend per share of Rs 1.00, with a dividend payout ratio of 17.64%, reflecting its commitment to returning value to shareholders.
Technically, the stock is positioned in a bullish range, with indicators such as MACD, Bollinger Bands, and KST all signaling positive momentum. With a return on capital employed (ROCE) of 5.8 and an attractive valuation, TGV Sraac is trading at a discount compared to its historical averages. Despite some challenges, the company’s recent performance highlights its resilience and potential for continued growth.
