Delton Cables Receives 'Hold' Rating from MarketsMOJO, Showing Neutral Stance on Stock

Delton Cables, a microcap company in the cable industry, has recently received a 'Hold' rating from MarketsMOJO on October 25, 2024. This downgrade is based on various factors that suggest a neutral stance on the stock.
One of the main reasons for the 'Hold' rating is the company's healthy long-term growth. Delton Cables has shown a consistent growth in net sales and operating profit, with an annual rate of 41.12% and 61.92%, respectively. In fact, in the last quarter, the company declared very positive results with a growth in net sales of 8.88%. This trend has been consistent for the last 5 consecutive quarters.

The stock is also technically in a mildly bullish range, with multiple factors such as MACD, Bollinger Band, KST, and OBV pointing towards a bullish outlook. Additionally, the company has shown consistent returns over the last 3 years, outperforming BSE 500 in each of the last 3 annual periods.

However, there are some concerns regarding the company's ability to service debt, as it has a high debt to EBITDA ratio of 5.57 times. This could potentially impact the company's profitability in the long run. Furthermore, the company has a low return on equity (avg) of 4.58%, indicating low profitability per unit of shareholders' funds.

In terms of valuation, Delton Cables has an expensive valuation with a 3.8 enterprise value to capital employed and a PEG ratio of 0. This suggests that the stock is trading at a discount compared to its average historical valuations. However, despite the company's size, domestic mutual funds hold only 0% of the company, which could indicate a lack of confidence in the stock or the business.

Overall, while Delton Cables has shown strong growth and consistent returns, there are some concerns regarding its debt and profitability. The 'Hold' rating from MarketsMOJO suggests a neutral stance on the stock, and investors may want to carefully consider these factors before making any investment decisions.