Barak Valley Cements Receives 'Hold' Rating from MarketsMOJO, Shows Impressive Financial Growth

Barak Valley Cements, a microcap company in the cement industry, has recently received a 'Hold' rating from MarketsMOJO on April 1, 2024. This upgrade is based on the company's positive financial results for the last three consecutive quarters.
In the half-yearly period, the company's profits have grown by an impressive 105.58%, with a net sales growth of 32.48%. Additionally, its operating profit to interest ratio is at a high of 3.86 times. These factors contribute to the company's attractive valuation, with a ROCE of 10.8 and an enterprise value to capital employed ratio of 1.

Technically, the stock is in a mildly bullish range, with its MACD and KST technical factors also showing a bullish trend. Furthermore, the stock is currently trading at a discount compared to its historical valuations, making it an attractive investment opportunity.

The majority shareholders of Barak Valley Cements are its promoters, indicating their confidence in the company's performance. In the past year, the stock has generated a return of 118.12%, outperforming the BSE 500 index. Its profits have also increased by 68.4%, resulting in a low PEG ratio of 0.2.

However, the company's long-term fundamental strength is weak, with an average ROCE of 7.33%. Its net sales have declined at an annual rate of -4.07% over the last five years, and its operating profit has only grown at 13.99%. Additionally, the company has a high debt to EBITDA ratio of 4.10 times, indicating a low ability to service debt.

Despite these weaknesses, Barak Valley Cements has consistently delivered returns over the last three years and has outperformed the BSE 500 index. Investors should consider the company's financial performance and future prospects before making any investment decisions.