Udaipur Cement Works Upgraded to 'Hold' by MarketsMOJO, Showing Potential for Long-Term Growth

Udaipur Cement Works, a smallcap company in the cement industry, has recently been upgraded to a 'Hold' by MarketsMOJO. This decision is based on the company's healthy long-term growth, with an annual operating profit growth rate of 65.80%. Additionally, the stock is currently in a mildly bullish range and its technical trend has improved from sideways to bullish.
One of the reasons for the 'Hold' rating is the company's attractive valuation, with a ROCE of 6.4 and a 1.5 enterprise value to capital employed. The stock is also trading at a discount compared to its average historical valuations. However, it should be noted that Udaipur Cement Works has a high debt to equity ratio of 2.33 times, which may be a cause for concern.

In the last quarter, the company declared negative results after two consecutive positive quarters. The PAT(Q) has fallen by -344.2% at Rs -10.28 crore, and the operating profit to interest (Q) is at its lowest at 1.35 times. The interest (Q) is also at its highest at Rs 28.81 crore.

Despite its small size, domestic mutual funds hold only 0.14% of the company, which may indicate that they are not comfortable with the company's current price or business. Additionally, Udaipur Cement Works has underperformed the market in the last year, with a return of only 8.63% compared to the market's return of 36.29%.

Overall, while Udaipur Cement Works shows potential for long-term growth, its high debt and recent negative results may be a cause for concern. Investors may want to hold off on investing in this smallcap company until there is more stability and positive results in the future.