Inter State Oil Carrier Receives 'Hold' Rating After Strong Quarterly 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 growth of 62.97% in net sales in the last half year.
Technically, the stock is in a mildly bullish range and has shown improvement from a sideways trend on September 3, 2024. Multiple factors, such as MACD, Bollinger Band, and OBV, indicate a bullish outlook for the stock.

However, with a ROCE of 6.1, the stock is currently trading at a premium compared to its historical valuations. Additionally, the company's profits have fallen by -14% in the past year, despite generating a return of 17.92%. Majority shareholders of Inter State Oil Carrier are non-institutional investors.

The company also has weak long-term fundamental strength, 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% signifies low profitability per unit of shareholders' funds.

In the last year, Inter State Oil Carrier has underperformed the market, with a return of 17.92% compared to the market's (BSE 500) return of 38.66%. While the company's recent positive results are a good sign, investors should carefully consider the company's financial health before making any investment decisions.