Delton Cables Receives 'Buy' Rating from MarketsMOJO, Shows Strong Growth and Positive Results

Delton Cables, a microcap company in the cable industry, has recently received a 'Buy' rating from MarketsMOJO. This upgrade is based on the company's healthy long-term growth, with an annual increase of 41.12% in net sales and 51.39% in operating profit. In fact, the company has declared positive results for the last five consecutive quarters, with a higher PAT (HY) of Rs 5.67 crore and the highest net sales (Q) of Rs 143.48 crore.
The stock is currently in a bullish range and has shown a 4.03% return since the technical trend improved from Mildly Bullish on 12-Sep-24. Multiple factors, such as MACD, Bollinger Band, and KST, indicate a bullish trend for the stock.

Moreover, with a ROCE of 11.4, the stock is fairly valued with a 3.6 enterprise value to capital employed. It is also trading at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 476.57%, while its profits have risen by 1235%. This results in a PEG ratio of 0, indicating a good investment opportunity.

Delton Cables has consistently delivered strong returns over the last three years, outperforming the BSE 500 index. However, there are some risks associated with the company. It has a high debt to EBITDA ratio of 5.57 times, which may affect its ability to service debt. Additionally, the company has a low return on equity (avg) of 2.94%, indicating low profitability per unit of shareholders' funds.

Another risk factor is that despite its size, domestic mutual funds hold only 0% of the company. This may suggest that they are not comfortable with the company's current price or its business. However, with its strong growth potential and positive track record, Delton Cables remains a promising investment opportunity in the cable industry.