Cybele Industries Receives 'Hold' Rating from MarketsMOJO After Record Breaking First Quarter Results

Cybele Industries, a microcap company in the cable industry, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes after the company reported positive results in the first quarter of 2024, with its PBDIT(Q) reaching a record high of Rs 1.22 crore. Additionally, its operating profit to net sales (Q) also saw a significant increase, reaching 13.54%, and its PBT less OI(Q) was at Rs 0.75 crore, the highest in the company's history.
The stock is currently in a bullish range, with its technical trend improving from mildly bullish to bullish on June 11, 2024. This can be attributed to multiple factors such as MACD, Bollinger Band, and KST. Furthermore, with a ROCE of 1.4, the stock is fairly valued and is currently trading at a discount compared to its average historical valuations.

Over the past year, Cybele Industries has generated a return of 79.41%, outperforming the BSE 500 index. However, its profits have only seen a modest increase of 4%. The majority shareholders of the company are its promoters, indicating their confidence in the company's future prospects.

While the company has shown consistent returns over the last three years, its long-term fundamental strength is weak with a -6.10% CAGR growth in operating profits over the last five years. Additionally, its ability to service its debt is also a concern, with a poor EBIT to Interest (avg) ratio of 0.78. The company's return on equity (avg) is also low at 1.42%, indicating a low profitability per unit of shareholders' funds.

In conclusion, while Cybele Industries has shown positive growth in the first quarter of 2024 and is currently in a bullish trend, its long-term fundamental strength and profitability need to be closely monitored. Investors are advised to hold their positions in the stock for now and keep an eye on any future developments.