Chartered Logistics Reports Third Consecutive Quarter of Profit Amid Long-Term Challenges

Chartered Logistics, a microcap player in the logistics industry, has recently undergone an adjustment in evaluation, reflecting a nuanced view of its financial standing. The company has reported positive financial performance for the second quarter of FY24-25, with a profit after tax of Rs 1.61 crore. This marks the third consecutive quarter of favorable results, indicating a consistent operational trend.
Despite the positive quarterly outcomes, the company faces challenges in its long-term fundamentals, evidenced by a compound annual growth rate (CAGR) of -6.73% in operating profits over the past five years. Additionally, the high debt-to-EBITDA ratio of 6.98 times raises concerns about its capacity to service debt effectively. The return on equity stands at an average of 0.84%, suggesting limited profitability relative to shareholders' funds.

On the technical front, the stock is positioned within a bullish range, supported by indicators such as MACD and Bollinger Bands. However, a decrease in promoter holding to 37.07% this quarter may warrant attention. Overall, the stock has outperformed the broader market, generating a return of 37.96% over the past year, significantly surpassing the BSE 500's return of 9.22%.

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