Inter State Oil Carrier Receives 'Sell' Rating from MarketsMOJO Due to Weak Fundamentals and Technical Indicators

Inter State Oil Carrier, a microcap logistics company, has recently received a 'Sell' rating from MarketsMOJO. This downgrade is based on the company's weak long-term fundamental strength, with a -12.68% CAGR growth in operating profits over the last 5 years. Additionally, the company has a high debt to EBITDA ratio of 4.38 times, indicating a low ability to service debt. The return on equity for the company has also been low at 7.44%, showing a lack of profitability per unit of shareholders' funds.
Technically, the stock is currently in a mildly bearish range, with the trend deteriorating from mildly bullish on 03-May-24. The Bollinger Band and KST technical factors are also bearish, further supporting the 'Sell' rating.

However, there have been some positive developments for Inter State Oil Carrier, with the company reporting higher net sales of Rs 59.48 crore and a significant growth in profits of 590.91% in the last 9 months. The company also has an attractive valuation with a ROCE of 5.8 and a 1 enterprise value to capital employed. Additionally, the stock is currently trading at a discount compared to its average historical valuations.

It is worth noting that while the stock has generated a return of 51.98% in the last year, its profits have fallen by -42.5%. The majority shareholders of Inter State Oil Carrier are non-institutional investors.

Overall, Inter State Oil Carrier has shown market-beating performance with a return of 51.98% in the last year, outperforming the BSE 500 index's return of 36.10%. However, considering the company's weak long-term fundamentals and technical indicators, MarketsMOJO has downgraded the stock to 'Sell'. Investors should carefully evaluate the company's financials and market trends before making any investment decisions.