Cords Cable Industries Receives 'Buy' Rating from MarketsMOJO, Shows Strong Performance and Attractive Valuation

Cords Cable Industries, a microcap company in the cable industry, has recently received a 'Buy' rating from MarketsMOJO on July 24, 2024. This upgrade is based on the company's high management efficiency, with a ROCE (Return on Capital Employed) of 15.54%.
In the latest quarter, Cords Cable Industries has shown positive results with its ROCE reaching a high of 15.54%, while its net sales and PBDIT (Profit Before Depreciation, Interest, and Taxes) also reached their highest levels at Rs 179.22 crore and Rs 12.09 crore respectively. This indicates a strong performance by the company in the market.

Technically, the stock is currently in a bullish range and has shown improvement from a mildly bullish trend on July 22, 2024. Multiple factors such as MACD, Bollinger Band, and KST (Know Sure Thing) also suggest a bullish trend for the stock.

Moreover, with a ROCE of 15, Cords Cable Industries is currently trading at an attractive valuation with a 1.6 Enterprise value to Capital Employed. This is also a discount compared to its average historical valuations. In the past year, the stock has generated a return of 147.37%, while its profits have increased by 39.5%. The PEG (Price/Earnings to Growth) ratio of the company is also at a favorable level of 0.8.

The majority shareholders of Cords Cable Industries are its promoters, which is a positive sign for investors. The company has also shown market-beating performance in the long term, outperforming BSE 500 in the last 3 years, 1 year, and 3 months.

However, there are some risks associated with investing in Cords Cable Industries. The company's ability to service its debt is weak, with a poor EBIT (Earnings Before Interest and Taxes) to Interest (average) ratio of 1.33. This could potentially affect the company's financial stability. Additionally, the company's Return on Equity (average) is at a low of 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. This could be a concern for investors looking for long-term growth potential.

In conclusion, while Cords Cable Industries has shown positive performance and has received a 'Buy' rating, investors should also consider the risks associated with the company before making any investment decisions.