Cantabil Retail India Receives 'Hold' Rating

Cantabil Retail India, a smallcap company in the textile industry, has recently received a 'Hold' rating from MarketsMOJO on December 26, 2023. This upgrade is based on the company's healthy long-term growth, with an annual operating profit growth rate of 57.33%.
Technically, the stock is currently in a bullish range and has shown a positive trend since December 20, 2023, with a return of 2.58%. This is supported by various factors such as MACD, Bollinger Band, KST, and OBV.

However, the company did report negative results in September 2023 after 9 consecutive positive quarters. The operating profit to interest ratio was at its lowest at 4.08 times, and the PAT (profit after tax) saw a decline of -19.2%. Additionally, the debtors turnover ratio for the half-year was also at its lowest at 40.28 times.

With a ROCE (return on capital employed) of 19.1, the company has an expensive valuation with an enterprise value to capital employed ratio of 4.2. However, the stock is currently trading at a discount compared to its average historical valuations.

In the past year, while the stock has only generated a return of 1.41%, its profits have increased by 15.2%. This results in a PEG (price/earnings to growth) ratio of 2.1, indicating that the stock may be undervalued.

It is worth noting that despite being a smallcap company, domestic mutual funds hold only 0% of Cantabil Retail India. This could suggest that they are either not comfortable with the current price or have not conducted in-depth research on the company.

Overall, the stock has underperformed the market in the last year, with a return of 1.41% compared to the market's (BSE 500) return of 24.32%. While the company has shown promising growth potential, investors should carefully consider all factors before making any investment decisions.