Orissa Bengal Carrier Upgraded to 'Hold'

Orissa Bengal Carrier, a microcap logistics company, has recently been upgraded to a 'Hold' by MarketsMOJO on November 23, 2023. This upgrade is based on the company's strong ability to service debt, with a low Debt to EBITDA ratio of 1.13 times. The stock is also currently in a Mildly Bullish range, with technical trends showing improvement since November 23, 2023, resulting in a 1.08% return.
However, the company has shown poor long-term growth, with Net Sales growing at an annual rate of -0.90% and Operating profit at -14.08% over the last 5 years. In the recent quarter, the company's results have been flat, with a decrease in PBT LESS OI(Q) at Rs 2.25 crore and an increase in PAT(HY) at Rs 4.02 crore. The company's NET SALES(Q) has also fallen by -12.28%.

With a ROE of 1.5, the company has a Very Expensive valuation, with a 1.5 Price to Book Value. This is higher than its average historical valuations. In the past year, while the stock has generated a return of -35.36%, its profits have also fallen by -53%.

Moreover, there has been a decrease in promoter confidence, as they have reduced their stake in the company by -1.33% over the previous quarter. Currently, promoters hold 67.23% of the company, which may signify reduced confidence in the future of the business.

In the last 1 year, Orissa Bengal Carrier has underperformed the market, with negative returns of -35.36%, while the market (BSE 500) has generated returns of 16.72%. This indicates that the stock has not been able to keep up with the overall market performance.

Overall, while the recent upgrade to 'Hold' by MarketsMOJO may be a positive sign for Orissa Bengal Carrier, the company's poor long-term growth, expensive valuation, and underperformance in the market may be a cause for concern for investors. It is important to carefully consider all factors before making any investment decisions.