Universal Cables Reports Q2 FY24-25 Profit Amidst Financial Reassessment and Investor Interest

Universal Cables has recently undergone an adjustment in evaluation, reflecting a reassessment of its market position and financial metrics. The company, a small-cap player in the cable industry, has shown a profit after tax (PAT) of Rs 23.87 crore for the second quarter of FY24-25, which indicates a notable shift compared to previous periods.
Key financial metrics reveal that the company's long-term fundamental strength is under scrutiny, highlighted by an average Return on Capital Employed (ROCE) of 5.72%. Over the last five years, net sales have experienced an annual growth rate of 6.60%, while operating profit has remained relatively stagnant, growing at just 0.03%. Furthermore, the company's Debt to EBITDA ratio stands at 4.89 times, suggesting challenges in debt servicing capabilities.

Despite these underlying issues, the stock's technical indicators are positioned within a mildly bullish range, with MACD and KST indicators reflecting positive trends. Additionally, institutional investors have shown increased interest, raising their stake in Universal Cables by 1.21% in the last quarter, bringing their total ownership to 6.82%. Over the past year, the stock has delivered a return of 38.85%, although it is important to note that profits have seen a decline of 4.7%.

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