NCL Industries Upgraded to 'Hold' by MarketsMOJO, Shows Positive Growth in Latest Financial Results

NCL Industries, a microcap company in the cement industry, has recently been upgraded to a 'Hold' by 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 cash and cash equivalents at Rs 53.92 crore.

With a ROCE of 14.9, NCL Industries is currently trading at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 7.52%, 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. The stock is currently in a bearish range, with technical indicators such as MACD, Bollinger Band, and KST all pointing towards a negative trend.

Moreover, there has been a decrease in promoter confidence, with promoters reducing their stake in the company by -0.77% over the previous quarter. They currently hold 43.71% of the company, which may signify reduced confidence in the future of the business.

In the last 1 year, NCL Industries has underperformed the market, generating a return of 7.52% compared to the market's (BSE 500) returns of 32.41%. While the company has shown positive growth in the short term, its long-term performance and technical indicators suggest a cautious approach for investors.