Current Rating and Its Significance
The Strong Sell rating assigned to Chartered Logistics Ltd indicates a cautious stance for investors, signalling that the stock is expected to underperform relative to the broader market. This rating is derived from a comprehensive evaluation of four key parameters: Quality, Valuation, Financial Trend, and Technicals. Each of these factors contributes to the overall assessment of the company’s investment appeal and risk profile.
Quality Assessment
As of 06 January 2026, Chartered Logistics Ltd exhibits a below-average quality grade. The company’s long-term fundamental strength remains weak, with a compounded annual growth rate (CAGR) of operating profits declining by 28.66% over the past five years. This negative growth trajectory highlights challenges in sustaining profitability and operational efficiency. Additionally, the company’s ability to service debt is limited, evidenced by a high Debt to EBITDA ratio of 7.62 times, which raises concerns about financial leverage and solvency risks.
The return on equity (ROE) further underscores the company’s low profitability, averaging just 1.88%. This figure suggests that shareholders are receiving minimal returns on their invested capital, which is a critical consideration for long-term investors seeking value creation.
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- - Fundamental Analysis
- - Technical Signals
- - Peer Comparison
Valuation Perspective
Despite the company’s operational challenges, Chartered Logistics Ltd’s valuation grade is currently attractive. This suggests that the stock price is relatively low compared to its earnings potential and asset base, offering a potentially favourable entry point for value-oriented investors. However, attractive valuation alone does not offset the risks posed by weak fundamentals and financial strain.
Financial Trend and Recent Performance
The financial trend for Chartered Logistics Ltd is negative as of 06 January 2026. The company reported a significant decline in profitability, with its profit after tax (PAT) for the nine months ending September 2025 at ₹1.24 crore, reflecting a steep contraction of 64.77%. Quarterly net sales also fell by 5.5% compared to the previous four-quarter average, signalling weakening revenue momentum.
Moreover, non-operating income accounted for an unusually high 322.73% of profit before tax (PBT), indicating that core business operations are underperforming and that earnings are being supplemented by irregular income sources. This raises concerns about the sustainability of profits going forward.
Technical Analysis
From a technical standpoint, the stock is mildly bearish. While short-term price movements have shown some positive returns—such as a 27.10% gain over the past week and a 21.06% rise in the last month—the longer-term trend remains weak. Over the past year, Chartered Logistics Ltd has underperformed significantly, delivering a negative return of 30.44%, compared to the BSE500 index’s positive 5.68% return over the same period. This divergence highlights the stock’s relative weakness in the broader market context.
Stock Returns Overview
As of 06 January 2026, the stock’s recent returns show mixed signals. The one-day gain stands at 0.45%, while the year-to-date return is a positive 19.76%. However, the one-year return remains deeply negative at -30.44%, reflecting persistent challenges over the longer term. These figures illustrate volatility and uncertainty, which investors should carefully consider when evaluating the stock’s risk-reward profile.
Implications for Investors
The Strong Sell rating on Chartered Logistics Ltd serves as a cautionary indicator for investors. It suggests that the stock currently faces significant headwinds from weak fundamentals, deteriorating financial trends, and a bearish technical outlook. While the valuation appears attractive, the underlying quality and financial health of the company raise concerns about its ability to generate sustainable returns.
Investors should weigh these factors carefully and consider the potential risks before initiating or maintaining positions in this stock. The rating reflects a comprehensive analysis aimed at helping investors make informed decisions based on the company’s current standing rather than past performance.
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Summary
In summary, Chartered Logistics Ltd’s current Strong Sell rating by MarketsMOJO, updated on 23 September 2025, reflects a comprehensive evaluation of the company’s present-day fundamentals as of 06 January 2026. The stock’s below-average quality, negative financial trends, and bearish technical signals outweigh its attractive valuation, signalling caution for investors. While short-term price movements have shown some gains, the longer-term outlook remains challenging.
Investors should consider these factors carefully and monitor the company’s performance closely before making investment decisions.
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