Birla Cable Downgraded to 'Sell' by MarketsMOJO, Financial Results Raise Concerns

Birla Cable, a microcap company in the cable industry, has recently been downgraded to a 'Sell' by MarketsMOJO on April 16, 2024. This decision was based on the company's poor long-term growth, with an annual operating profit growth rate of only 14.69% over the last 5 years.
In addition, the company's recent financial results for December 2023 have also been negative, with a significant decrease in PBT and PAT. The operating profit to interest ratio has also reached its lowest point at 2.83 times. Technically, the stock is currently in a Mildly Bearish range, with a deteriorating trend since April 16, 2024, resulting in a 3.05% return.

One concerning factor is that despite its size, domestic mutual funds hold only 0% of the company. This could indicate that they are not comfortable with the company's current price or business.

On a positive note, Birla Cable has a low Debt to Equity ratio and an attractive valuation with a ROCE of 12.8 and an Enterprise value to Capital Employed ratio of 2.4. However, the stock is currently trading at a discount compared to its historical valuations.

In the past year, Birla Cable has outperformed the market with a return of 97.57%, while its profits have only increased by 9.2%. This results in a PEG ratio of 2.5, which may be a cause for concern.

Overall, Birla Cable's recent downgrade to 'Sell' and its negative financial results raise some red flags for potential investors. However, the company's low Debt to Equity ratio and market-beating performance in the past year may still make it an attractive option for some. As always, it is important for investors to conduct their own research and make informed decisions before investing in any company.