Chandra Prabhu International Receives Upgraded Stock Call from MarketsMOJO Based on Strong Management Efficiency and Growth

Chandra Prabhu International, a microcap trading company, has recently received an upgraded stock call from MarketsMOJO. The company's stock has been upgraded to 'Hold' on 21 May 2024. This upgrade is based on the company's strong management efficiency, ability to service debt, and healthy long-term growth.
One of the key factors contributing to the upgraded stock call is the company's high return on capital employed (ROCE) of 32.42%. This indicates that the company is efficiently utilizing its capital to generate profits. Additionally, Chandra Prabhu International has a low debt to EBITDA ratio of 1.09 times, which shows its strong ability to service debt.

In terms of growth, the company has shown positive results in December 2023. Its profits have grown by an impressive 545.36%, while net sales have increased by 53.71%. The company also has a healthy cash position, with cash and cash equivalents at a record high of Rs 28.77 crore.

From a technical standpoint, the stock is currently in a mildly bullish range. The technical trend has improved from sideways to bullish since 17 May 2024. Another positive technical factor is that the MACD has been bullish since the same date.

In terms of valuation, Chandra Prabhu International is trading at an attractive valuation with an ROCE of 7.1 and an enterprise value to capital employed ratio of 1.1. The stock is also trading at a fair value compared to its average historical valuations.

However, it is worth noting that the company's profits have fallen by -61.4% in the past year, while the stock has generated a return of 8.29%. This indicates that the stock may have underperformed the market (BSE 500) returns of 36.54% in the last year.

The majority shareholders of Chandra Prabhu International are the promoters, which shows their confidence in the company's future prospects. Overall, with its strong management efficiency, ability to service debt, and healthy long-term growth, Chandra Prabhu International's stock is currently a 'Hold' according to MarketsMOJO.