Cords Cable Industries Faces Debt Concerns Despite Strong Sales Growth and Profit Increase

Cords Cable Industries has recently undergone an adjustment in evaluation, reflecting changes in its underlying financial metrics and market position. The stock's performance has shown a notable divergence from broader market trends, particularly over the past year, where it reported a return of -24.52%, contrasting with the BSE500's decline of -7.50%.
Despite this, the company has demonstrated positive financial results over the last seven consecutive quarters, with net sales for the first nine months reaching Rs 664.34 crore, marking a growth of 27.73%. Additionally, the profit after tax (PAT) for the same period has increased by 43.93%, indicating a robust operational performance.

However, the company's ability to manage its debt remains a concern, as evidenced by a low EBIT to interest ratio of 1.40. This raises questions about its long-term financial stability, especially given the modest growth rate of operating profit at 7.43% annually over the past five years.

Cords Cable Industries continues to trade at a discount compared to its peers, with a PEG ratio of 0.3, suggesting potential valuation opportunities in the context of its financial performance.

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