NCL Industries receives 'Hold' rating and shows positive growth in latest financial results

NCL Industries, a microcap company in the cement industry, has recently received a 'Hold' rating from MarketsMOJO. This upgrade is based on the company's strong ability to service debt, with a low Debt to EBITDA ratio of 1.33 times.
In the latest financial results for March 2024, NCL Industries has shown positive growth with a 62.11% increase in PAT (HY) at Rs 48.60 crore and a highest ever ROCE (HY) of 15.89%. The company also has a healthy cash position with Rs 53.92 crore in cash and cash equivalents.

With a ROCE of 14.9, NCL Industries is currently trading at a discount compared to its historical valuations. In the past year, the stock has generated a return of 10.90%, while its profits have risen by 104.7%. This has resulted in a low PEG ratio of 0.1, indicating an attractive valuation for the company.

However, NCL Industries has shown poor long-term growth with an annual rate of -35.55% for operating profit over the last 5 years. This may be a concern for investors.

Technically, the stock is currently in a Mildly Bearish range, with the MACD being Bearish since 05 Jun 2024. This could be a sign of a potential downward trend in the stock.

Moreover, there has been a decrease in promoter confidence as they have reduced their stake in the company by -0.77% over the previous quarter. Currently, promoters hold 43.71% of the company, which may indicate a lack of confidence in the future of the business.

In the last 1 year, NCL Industries has underperformed the market with a return of 10.90%, compared to the market (BSE 500) returns of 32.10%. This could be a cause for concern for investors.

Overall, while NCL Industries has shown positive financial results and has a strong ability to service debt, there are some concerns regarding its long-term growth and technical indicators. Investors may want to closely monitor the stock before making any investment decisions.