Ultracab (India) Receives 'Buy' Rating and Shows Impressive Growth in Cable Industry

Ultracab (India) has recently received a 'Buy' rating from MarketsMOJO, making it a promising investment opportunity in the cable industry. The company has shown impressive growth in its net sales, with a 77.87% increase in the latest quarter. This positive trend has been consistent for the past 3 quarters, with the company reporting its highest PAT(Q) at Rs 2.52 crore and DEBTORS TURNOVER RATIO(HY) at 11.21 times.
The stock is currently in a Mildly Bullish range and has shown improvement in its technical trend since 26-Nov-24. The Bollinger Band, a key technical factor, has been Bullish since the same date. Additionally, with a ROCE of 16.7, Ultracab (India) has an attractive valuation with a 2.2 Enterprise value to Capital Employed. It is also trading at a discount compared to its average historical valuations.

Despite a -11.68% return in the past year, the company's profits have increased by 38.1%, resulting in a low PEG ratio of 0.5. The majority shareholders of Ultracab (India) are non-institutional investors, indicating their confidence in the company's potential.

However, there are some risks to consider before investing in Ultracab (India). The company has a high Debt to EBITDA ratio of 4.05 times, which may affect its ability to service debt. Additionally, its long-term growth has been below par, with a 19.31% annual growth rate in net sales over the last 5 years.

Despite these risks, Ultracab (India) has shown promising results and has the potential to be a profitable investment in the cable industry. With a 'Buy' rating from MarketsMOJO and positive financial performance, it is worth considering for investors looking for a microcap stock with potential for growth.