Dynamic Cables Receives 'Hold' Rating, Reports Strong Financials and Bullish Trend

Dynamic Cables, a smallcap company in the cable industry, has recently received a 'Hold' rating from MarketsMOJO on November 21, 2024. This downgrade is due to the company's strong ability to service debt, with a low Debt to EBITDA ratio of 1.36 times.
In positive news, Dynamic Cables reported a growth of 155.64% in PBT LESS OI(Q) at Rs 16.54 crore and a growth of 52.53% in NET SALES(Q) at Rs 234.15 crore in September 2024. The company also achieved its highest OPERATING PROFIT TO INTEREST(Q) ratio of 5.24 times.

Technically, the stock is currently in a Mildly Bullish range, with multiple factors such as MACD, Bollinger Band, KST, and DOW indicating a bullish trend. With a ROE of 14, the stock is fairly valued with a price to book value of 6.7. Additionally, the stock is currently trading at a discount compared to its average historical valuations.

Over the past year, Dynamic Cables has generated a return of 126.31%, while its profits have risen by 41.3%. However, the company's PEG ratio of 1.7 suggests that its long-term growth may be poor, with net sales growing at an annual rate of 22.60% over the last 5 years.

One concerning factor is that despite its size, domestic mutual funds hold only 0% of the company. This may indicate that they are not comfortable with the company's current price or its business, as domestic mutual funds have the capability to conduct in-depth research on companies.

In conclusion, while Dynamic Cables has shown positive growth and is currently in a bullish trend, the company's long-term growth may be a cause for concern. Investors may want to hold off on investing in this smallcap company until further research is conducted.