Birla Cable downgraded to 'Sell' by MarketsMOJO due to poor long-term growth

Birla Cable, a microcap company in the cable industry, has recently been downgraded to a 'Sell' by MarketsMOJO on February 12, 2024. This downgrade is due to poor long-term growth, with operating profit only growing at an annual rate of 14.69% over the last 5 years.
The company also reported negative results in December 2023, with a significant decrease in PBT and PAT. The operating profit to interest ratio was also at its lowest at 2.83 times. Despite its size, domestic mutual funds hold a mere 0% stake in the company, which could indicate their discomfort with the stock's price or the business itself.

On the positive side, Birla Cable has a low debt to equity ratio and is technically in a mildly bullish range. Multiple factors, such as MACD, Bollinger Band, KST, and OBV, are bullish for the stock. Additionally, with a ROCE of 12.8, the company has a fair valuation with a 2.7 enterprise value to capital employed.

However, the stock is currently trading at a discount compared to its average historical valuations. While it has generated a return of 114.47% in the past year, its profits have only risen by 9.2%, resulting in a PEG ratio of 2.9.

Despite these mixed factors, Birla Cable has consistently outperformed the BSE 500 index in the last 3 annual periods. Investors should carefully consider these factors before making any investment decisions regarding Birla Cable.