CWD Receives 'Hold' Rating from MarketsMOJO, Shows Strong Long-Term Growth

CWD, a microcap IT hardware company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes as the company has shown healthy long-term growth, with its net sales increasing at an annual rate of 73.40%.
Technically, the stock is currently in a Mildly Bullish range, with the trend improving from Sideways on 14-Oct-24 and generating a return of 1.25% since then. Additionally, the DOW has also been Mildly Bullish since 14 Oct 2024, which is a key technical factor to consider.

The majority shareholders of CWD are its promoters, indicating their confidence in the company's future prospects. However, the company's results for Sep 23 were flat, with the lowest operating cash flow of Rs -3.19 Cr.

With a ROCE of 9.4, CWD has a Very Expensive valuation, with an enterprise value to capital employed ratio of 10.5. Moreover, in the past year, while the stock has generated a return of 5.89%, its profits have fallen by -48%. This underperformance is also reflected in the stock's returns, which are much lower than the market (BSE 500) returns of 35.67% in the last 1 year.

Overall, while CWD has shown promising growth in the long term, its recent results and valuation may warrant a 'Hold' rating for now. Investors should keep an eye on the company's future performance before making any investment decisions.