Chartered Logistics Receives 'Hold' Rating from MarketsMOJO, Shows Positive Results and Bullish Trend

Chartered Logistics, a microcap logistics company, has recently received a 'Hold' rating from MarketsMOJO on October 16, 2024. This upgrade is based on the company's positive results in the June 2024 quarter, with a higher PAT of Rs 2.27 crore and the highest net sales of Rs 22.08 crore. Additionally, the PBDIT for the quarter was also at its highest at Rs 2.13 crore.
Technically, the stock is currently in a bullish range and has shown improvement from a mildly bullish trend on October 16, 2024. Multiple factors such as MACD, Bollinger Band, and KST also indicate a bullish trend for the stock.

With a ROCE of 2.5, the stock is fairly valued with an enterprise value to capital employed ratio of 2.1. However, it is currently trading at a premium compared to its historical valuations. In the past year, the stock has generated a return of 118.46%, while its profits have increased by 230%. The PEG ratio of the company is 0, indicating a good value for investors.

The majority shareholders of Chartered Logistics are non-institutional investors. The stock has outperformed the market (BSE 500) with a return of 118.46% in the last year, compared to the market's return of 35.33%.

However, the company's long-term fundamental strength is weak, with a -9.36% CAGR growth in operating profits over the last 5 years. It also has a high debt to EBITDA ratio of 9.61 times, indicating a low ability to service debt. The return on equity (average) for the company is 1.83%, which signifies low profitability per unit of shareholders' funds.

Overall, while Chartered Logistics has shown positive results and a bullish trend, it also has some weaknesses in its long-term fundamentals. Investors should carefully consider these factors before making any investment decisions.