AVG Logistics Receives 'Sell' Rating from MarketsMOJO Due to High Debt and Poor Growth.

AVG Logistics, a microcap logistics company, has recently received a 'Sell' rating from MarketsMOJO. This downgrade is based on several factors, including the company's high debt to EBITDA ratio of 3.45 times, indicating a low ability to service debt. Additionally, the company has shown poor long-term growth with net sales growing at an annual rate of only 8.90% and operating profit at 16.34% over the last 5 years.
Technically, the stock is currently in a Mildly Bearish range, with the technical trend deteriorating from Mildly Bullish on 02-Sep-24. Multiple factors, such as RSI, Bollinger Band, and KST, are also indicating a bearish outlook for the stock.

Other factors contributing to the 'Sell' rating include PBT LESS OI(Q) growing at 161.88%, PAT(Q) growing at 105.9%, and the highest operating profit to interest ratio of 3.45 times. However, the company does have an attractive valuation with a ROCE of 11 and an enterprise value to capital employed ratio of 2.1. The stock is currently trading at a discount compared to its average historical valuations.

Institutional investors have also shown an increasing interest in the company, with their stake increasing by 0.58% over the previous quarter. These investors have better resources and capabilities to analyze the fundamentals of companies, making their participation a positive sign for AVG Logistics.

Despite the recent downgrade, AVG Logistics has shown market-beating performance with a return of 84.42% in the last year, significantly higher than the market (BSE 500) returns of 38.49%. However, with the company's current financial and technical indicators, MarketsMOJO has deemed it a 'Sell' for now.