Inter State Oil Carrier Receives 'Hold' Rating After Strong Quarter Results

Inter State Oil Carrier, a microcap logistics company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes after the company has shown positive results for the last four consecutive quarters, with a significant growth of 62.97% in net sales in the last half year.
Technically, the stock is currently in a mildly bullish range, with an improved trend from mildly bearish on 26-Aug-24. The Bollinger Band and KST technical factors also indicate a bullish trend. Additionally, with a ROCE of 6.1 and an attractive valuation of 1.1 Enterprise value to Capital Employed, the stock is trading at a premium compared to its historical valuations.

However, the company's long-term fundamental strength is weak, with a -12.68% CAGR growth in operating profits over the last five years. It also has a high Debt to EBITDA ratio of 4.38 times, indicating a low ability to service debt. The return on equity (avg) of 7.44% also signifies low profitability per unit of shareholders' funds.

In the past year, Inter State Oil Carrier has underperformed the market, with a return of only 6.23%, compared to the market's (BSE 500) return of 39.36%. The majority shareholders of the company are non-institutional investors.

Overall, while the recent positive results and technical factors may make Inter State Oil Carrier a hold for now, the company's weak long-term fundamentals and underperformance in the market may be a cause for concern for potential investors.