Ultracab (India) Receives 'Buy' Rating and Shows Impressive Growth in Net Profit, Making it a Promising Investment in Cable Industry

Ultracab (India) has recently been upgraded to a 'Buy' rating by MarketsMOJO, making it a promising investment opportunity in the cable industry. The company has shown impressive growth in its net profit, with a 106.8% increase in Jun 24. This positive trend has continued for the last two consecutive quarters, with PBT LESS OI(Q) growing at 107.91% and PAT(Q) reaching its highest at Rs 2.13 cr. Additionally, the company's net sales have also reached a record high of Rs 53.69 cr.
Technically, the stock is in a mildly bullish range and has shown improvement from a sideways trend on 26-Aug-24. The Bollinger Band and KST technical factors are also bullish, indicating a positive outlook for the stock.

With a ROCE of 14.2, Ultracab (India) has an attractive valuation and is currently trading at a discount compared to its historical average. In the past year, the stock has generated a return of 19.11%, while its profits have increased by 23.2%. This gives the company a PEG ratio of 1, which is a good indicator of its growth potential.

The majority shareholders of Ultracab (India) are non-institutional investors, which can be seen as a positive sign as it shows confidence in the company's performance.

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 relatively low, with net sales growing at an annual rate of 14.76% over the last 5 years. The stock has also underperformed the market in the last year, with a return of 19.11% compared to the market's return of 39.36%.

In conclusion, Ultracab (India) is a promising investment opportunity in the cable industry, with positive financial results and a bullish technical outlook. However, investors should also consider the risks involved before making any investment decisions.