Aegis Logistics downgraded to 'Hold' by MarketsMOJO, but shows potential for growth.

Aegis Logistics, a midcap logistics company, has recently been downgraded to a 'Hold' by MarketsMOJO on April 16, 2024. This decision was based on various factors such as the company's high management efficiency with a ROCE of 16.77%, its strong ability to service debt with a low Debt to EBITDA ratio of 0.60 times, and its healthy long-term growth with an annual rate of 18.70% in operating profit.
The stock is currently in a bullish range and has shown improvement in its technical trend since March 28, 2024, generating a return of 18.01% since then. Multiple factors, such as MACD, Bollinger Band, KST, DOW, and OBV, also indicate a bullish outlook for the stock.

Moreover, Aegis Logistics has a high institutional holding of 23.08%, which reflects the confidence of these investors in the company's fundamentals. In the long term, the stock has outperformed BSE 500 and has generated a return of 35.90% in the last year.

However, the company's results for December 2023 were flat, with a decline of -26.65% in net sales and a high debt-equity ratio of 0.65 times. The interest for the quarter was also at its highest at Rs 30.19 crore. With a ROCE of 16.2, the stock is currently trading at an expensive valuation with an enterprise value to capital employed ratio of 4.5. However, it is still trading at a discount compared to its average historical valuations.

In the past year, while the stock has generated a return of 35.90%, its profits have only risen by 23.3%, resulting in a PEG ratio of 1.6. Overall, Aegis Logistics has shown strong potential for growth and has performed well in the market, making it a 'Hold' for now.