Century Enka's Positive Results and Low Debt Ratio Attract Investors, Stock Upgraded to 'Buy' by MarketsMOJO

Century Enka, a smallcap textile company, has recently caught the attention of investors as MarketsMOJO upgraded its stock call to 'Buy' on November 8, 2024. This upgrade comes as the company has shown positive results in the last three consecutive quarters and has a low Debt to Equity ratio of 0 times.
In its latest financial report for September 2024, Century Enka declared a growth in Net Sales of 1.56%, which is considered very positive. The company's PBT LESS OI(Q) has also shown a significant growth of 112.0%, with the highest NET SALES(Q) at Rs 536.27 cr and PAT(Q) at Rs 21.40 cr, growing at 59.9%.

The stock is currently in a bullish range and its technical trend has improved from mildly bullish to bullish on November 8, 2024. This is supported by multiple factors such as MACD, Bollinger Band, KST, and OBV. Additionally, the majority shareholders of the company are non-institutional investors, indicating a positive sentiment towards the stock.

Century Enka has also outperformed the market (BSE 500) with a return of 63.48% in the last year, compared to the market's return of 30.56%. However, there are some risks associated with the stock, such as poor long-term growth in Net Sales and Operating profit over the last 5 years. The company also has a relatively expensive valuation with a Price to Book Value of 1.1 and a PEG ratio of 0.3.

Despite these risks, Century Enka has shown strong performance in the past year and has the potential to continue its positive trend. With its low Debt to Equity ratio and positive results, the company is a promising investment opportunity in the textile industry.