East West Freight Carriers Receives 'Hold' Rating After Positive Results and Bullish Trend

East West Freight Carriers, a microcap company in the miscellaneous industry, has recently received a 'Hold' rating from MarketsMOJO on October 14, 2024. This upgrade comes after the company reported very positive results in June 2024, with a growth in net sales of 36.21%. The company has also shown positive results for the last two consecutive quarters, with a significant increase in PBT LESS OI(Q) at Rs 1.08 crore, which has grown by 1081.8%, and a higher PAT(HY) at Rs 6.66 crore. Additionally, the company's ROCE(HY) is at its highest at 15.66%.
Technically, the stock is in a mildly bullish range and has shown improvement from sideways on October 14, 2024. Multiple factors, such as MACD, Bollinger Band, and KST, indicate a bullish trend for the stock. With a ROCE of 9.1, the company has a very attractive valuation with a 1.2 enterprise value to capital employed. The stock is also trading at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 45.74%, while its profits have risen by 576.2%. The PEG ratio of the company is 0, indicating a market-beating performance.

However, the company's long-term fundamental strength is weak, with an average ROCE of 6.85%. It also has a low ability to service debt, with a high debt to EBITDA ratio of 6.04 times. Additionally, there has been a decrease in promoter confidence, as they have reduced their stake in the company by -0.99% over the previous quarter and currently hold 60.29% of the company. This decrease in stake may signify reduced confidence in the future of the business.

Overall, East West Freight Carriers has shown positive results in recent quarters and has a bullish trend in the stock market. However, its weak long-term fundamental strength and decreasing promoter confidence should be considered by investors before making any investment decisions.