Cords Cable Industries Receives 'Buy' Rating from MarketsMOJO, Shows Strong Financial Performance and Bullish Trend

Cords Cable Industries, a microcap company in the cable industry, has recently received a 'Buy' rating from MarketsMOJO on June 7th, 2024. This upgrade is based on the company's high management efficiency, with a ROCE of 15.54%, and positive results in the March 2024 quarter. The company's ROCE (HY) is at its highest at 15.54%, while its net sales (Q) and PBDIT (Q) are also at their highest at Rs 179.22 crore and Rs 12.09 crore respectively.
In addition to its strong financial performance, the stock is also showing a bullish trend in the market. Since June 5th, 2024, the stock has generated a return of 24.9% and has shown positive signals from indicators such as MACD, Bollinger Band, KST, DOW, and OBV. With a ROCE of 15, the stock is currently trading at an attractive valuation with a 1.7 Enterprise value to Capital Employed. It is also trading at a discount compared to its average historical valuations.

Moreover, Cords Cable Industries has shown a market-beating performance in both the long term and near term. In the last 1 year, the stock has generated a return of 149.54%, outperforming the BSE 500. This trend has continued in the last 3 years, 1 year, and 3 months.

However, there are some risks associated with investing in this company. The company's ability to service its debt is weak, with a poor EBIT to Interest (avg) ratio of 1.33. Additionally, the company's Return on Equity (avg) is at a low 4.95%, indicating low profitability per unit of shareholders' funds. Furthermore, the company has shown poor long-term growth, with net sales growing at an annual rate of 8.54% and operating profit at 0.94% over the last 5 years.

Overall, Cords Cable Industries is a promising microcap company in the cable industry, with strong financial performance and a bullish trend in the market. However, investors should be aware of the risks associated with the company's debt and long-term growth.