Barak Valley Cements Receives 'Hold' Rating and Shows Strong Financial Growth

Barak Valley Cements, a microcap company in the cement industry, has recently received a 'Hold' rating from MarketsMOJO on March 12, 2024. This upgrade is based on the company's positive financial results for the past three quarters.
In the half-year period, the company's profits have grown by an impressive 105.58%, with a net sales growth of 32.48%. Additionally, Barak Valley Cements has a strong operating profit to interest ratio of 3.86 times, indicating its ability to cover interest expenses.

Technically, the stock is in a mildly bullish range and has multiple bullish factors such as MACD, KST, DOW, and OBV. With a ROCE of 10.8, the stock is attractively valued with a 1 Enterprise value to Capital Employed. It is also currently trading at a discount compared to its historical valuations.

In the past year, Barak Valley Cements has outperformed the market with a return of 113.92%, while its profits have risen by 68.4%. This is reflected in the company's low PEG ratio of 0.2.

The majority shareholders of Barak Valley Cements are its promoters, indicating their confidence in the company's performance. However, the company has weak long-term fundamental strength with an average ROCE of 7.33%. Its net sales have also shown a negative growth rate of -4.07% over the last 5 years, with operating profit at 13.99%.

Furthermore, Barak Valley Cements has a high debt to EBITDA ratio of 4.10 times, indicating its low ability to service debt. Despite these weaknesses, the company has shown a market-beating performance in the past year, making it a stock to watch in the cement industry.