Ultracab (India) Downgraded to 'Hold' by MarketsMOJO, High Debt and Poor Growth Raise Concerns for Investors

Ultracab (India) has recently been downgraded to a 'Hold' by MarketsMOJO due to its current financial performance. The company has shown a growth in net profit of 106.8% in the last quarter, which is a positive sign. However, the company has a high debt to EBITDA ratio of 4.05 times, indicating a low ability to service debt. This has led to a downgrade in the stock's rating.
Despite the positive results in the last two consecutive quarters, Ultracab (India) has shown poor long-term growth with net sales growing at an annual rate of 14.76% over the last 5 years. This could be a cause for concern for investors.

The stock is currently trading at a discount compared to its historical valuations and has a ROCE of 14.2, making it an attractive option for investors. However, the stock has underperformed the market in the last year, generating negative returns of -3.19% while the market has seen a growth of 38.49%.

Technically, the stock is in a mildly bearish range and has shown a deteriorating trend since September 2, 2024. The RSI and MACD technical factors are also bearish, indicating a potential downward trend in the stock's performance.

Overall, while Ultracab (India) has shown positive results in the last quarter, its high debt and poor long-term growth may be a cause for concern. Investors may want to hold off on investing in this microcap company until there is more stability in its financial performance.