MarketsMOJO Upgrades Jet Freight Logistics to 'Hold' Rating After Positive Results and Mildly Bullish Technicals

Jet Freight Logistics, a microcap logistics company, has recently received a 'Hold' rating from MarketsMOJO on July 23, 2024. This upgrade comes after the company reported positive results in March 2024, with a lowest debt-to-equity ratio of 0.92 times and a highest profit after tax of Rs 2.67 crore.
Technically, the stock is currently in a mildly bullish range and has shown improvement from a sideways trend on July 23, 2024. The Bollinger Band, a key technical factor, has also been mildly bullish since the same date.

With a return on capital employed of 3.6, Jet Freight Logistics is currently trading at an attractive valuation with an enterprise value to capital employed ratio of 1. This indicates that the stock is trading at a fair value compared to its historical valuations. However, despite generating a return of 22.03% in the past year, the company's profits have fallen by -5%.

On the other hand, Jet Freight Logistics has weak long-term fundamental strength with a -12.54% CAGR growth in operating profits over the last 5 years. The company also has a high debt to EBITDA ratio of 5.31 times, indicating a low ability to service debt. Additionally, the company has a low return on equity of 5.61%, signifying low profitability per unit of shareholders' funds.

It is also worth noting that 26.16% of the company's promoter shares are pledged, which could put additional downward pressure on the stock prices in falling markets.

In the last 1 year, Jet Freight Logistics has underperformed the market, generating a return of 22.03% compared to the market's (BSE 500) return of 34.69%. This could be a cause for concern for investors.

Overall, while Jet Freight Logistics may have some positive aspects such as a low debt-to-equity ratio and attractive valuation, it also has some weaknesses in terms of long-term fundamentals and underperformance in the market. Therefore, MarketsMOJO has upgraded the stock to a 'Hold' rating, suggesting a neutral stance for investors.