AVG Logistics Receives 'Hold' Rating from MarketsMOJO, Shows Strong Financial Performance.

AVG Logistics, a microcap logistics company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade is based on the company's strong financial performance in the last quarter.
The company's Profit Before Tax (PBT) has shown a significant growth of 161.88%, reaching Rs 5.84 crore. Similarly, the Profit After Tax (PAT) has also increased by 105.9%, reaching Rs 5.21 crore. This is the highest growth in Operating Profit to Interest ratio at 3.45 times.

With a Return on Capital Employed (ROCE) of 11, AVG Logistics has a very attractive valuation with an Enterprise value to Capital Employed ratio of 2.1. This is lower than its average historical valuations, making it a good investment opportunity.

In the past year, the stock has outperformed the market with a return of 91.72%, while its profits have risen by 178%. This is reflected in the company's low PEG ratio of 0.2, indicating its undervalued status.

Institutional investors have also shown an increasing interest in the company, with a 0.58% increase in their stake in the previous quarter. This is a positive sign as these investors have better resources to analyze the fundamentals of companies.

However, AVG Logistics has a high Debt to EBITDA ratio of 3.45 times, indicating a low ability to service debt. This could be a concern for investors.

Moreover, the company has shown poor long-term growth with Net Sales growing at an annual rate of 8.90% and Operating Profit at 16.34% over the last 5 years.

From a technical standpoint, the stock is currently in a mildly bearish range with its MACD and KST technical factors also showing a bearish trend. Overall, while AVG Logistics has shown strong financial performance in the last quarter, it is important for investors to consider both the positive and negative aspects before making any investment decisions.