Barak Valley Cements Receives 'Hold' Rating from MarketsMOJO, Attractive Valuation and Strong Short-Term Performance

Barak Valley Cements, a microcap company in the cement industry, has recently received a 'Hold' rating from MarketsMOJO on August 30, 2024. This upgrade is based on various technical factors, such as the stock being in a bullish range and improvements in the technical trend.
One of the key reasons for the 'Hold' rating is the stock's attractive valuation, with a ROCE of 10 and an enterprise value to capital employed ratio of 1.1. Additionally, the stock is currently trading at a discount compared to its historical valuations.

In terms of performance, Barak Valley Cements has shown market-beating results in both the long term and near term. In the past year, the stock has generated a return of 74.13%, outperforming the BSE 500 index. However, the company's long term fundamental strength is weak, with an average ROCE of 7.33% and poor growth in net sales and operating profit over the last 5 years.

Furthermore, Barak Valley Cements has a high debt to EBITDA ratio of 4.10 times, indicating a low ability to service debt. In the latest quarter, the company's results were flat, with a decline in net sales and a significant decrease in profits.

It is worth noting that the majority shareholders of Barak Valley Cements are the promoters, which may provide some stability to the company's operations. Overall, while the stock has shown strong performance in the past year, its long term fundamentals and debt levels may be cause for concern. Investors are advised to hold their positions and monitor the company's performance closely.