Rating Context and Current Position
The Strong Sell rating assigned to Chartered Logistics Ltd reflects a comprehensive assessment of the company’s quality, valuation, financial trend, and technical outlook. This rating was revised on 23 September 2025, when the Mojo Score dropped significantly from 31 to 14, signalling a marked deterioration in the stock’s attractiveness. Despite the rating change date, it is crucial for investors to consider the latest data as of 19 January 2026 to understand the stock’s present-day fundamentals and market behaviour.
Quality Assessment
Currently, Chartered Logistics Ltd exhibits below-average quality metrics. 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 persistent operational challenges. Additionally, the company’s ability to service its debt is limited, evidenced by a high Debt to EBITDA ratio of 7.62 times, which raises concerns about financial stability and leverage risk.
Profitability is also subdued, with an average Return on Equity (ROE) of just 1.88%, indicating that the company generates minimal returns on shareholders’ funds. Such low profitability metrics suggest that the firm struggles to convert equity investments into meaningful earnings, a factor that weighs heavily on the quality grade.
Valuation Perspective
Despite the weak quality indicators, the valuation grade for Chartered Logistics Ltd is currently attractive. This suggests that the stock is trading at a relatively low price compared to its earnings, book value, or cash flow metrics. For value-oriented investors, this could present an opportunity to acquire shares at a discount. However, the attractive valuation must be balanced against the company’s deteriorating fundamentals and financial risks, which may limit the potential for price appreciation in the near term.
Financial Trend and Recent Performance
The financial trend for Chartered Logistics Ltd remains negative. The latest quarterly results ending September 2025 reveal a 64.77% decline in Profit After Tax (PAT) for the first nine months, amounting to just ₹1.24 crore. Net sales for the quarter stood at ₹17.39 crore, down 5.5% compared to the previous four-quarter average, signalling weakening revenue momentum. Furthermore, non-operating income accounted for an outsized 322.73% of Profit Before Tax (PBT), indicating that core business operations are underperforming and the company is relying heavily on non-recurring or ancillary income sources.
Stock returns over the past year have been disappointing. As of 19 January 2026, Chartered Logistics Ltd has delivered a negative return of 40.48%, significantly underperforming the broader market benchmark BSE500, which generated a positive return of 7.40% over the same period. This underperformance reflects both the company’s operational struggles and investor sentiment turning cautious.
Technical Outlook
The technical grade for the stock is bearish, indicating that price trends and momentum indicators are unfavourable. Short-term price movements show volatility, with a modest 0.13% gain on the latest trading day but a 4.21% decline over the past week and a 4.94% drop over three months. The six-month trend is also negative, with an 8.42% decline. These technical signals suggest that the stock is facing selling pressure and lacks upward momentum, which may deter short-term traders and investors seeking stability.
Implications for Investors
The Strong Sell rating from MarketsMOJO implies that investors should exercise caution with Chartered Logistics Ltd. The combination of weak quality, negative financial trends, bearish technicals, and only attractive valuation points to a stock that currently carries significant risk. Investors may consider avoiding new positions or reducing exposure until there is clear evidence of operational turnaround and financial improvement.
For those already holding the stock, it is advisable to closely monitor quarterly results and debt servicing capabilities, as well as broader market conditions affecting the transport services sector. The current rating serves as a warning signal that the stock is not favourably positioned for near-term gains and may continue to underperform unless fundamental improvements materialise.
Handpicked from 50, scrutinized by experts – Our recent selection, this Mid Cap from Bank - Public, is already delivering results. Don't miss next month's pick!
- - Expert-scrutinized selection
- - Already delivering results
- - Monthly focused approach
Company Profile and Market Capitalisation
Chartered Logistics Ltd operates within the transport services sector and is classified as a microcap company. This classification reflects its relatively small market capitalisation and limited liquidity compared to larger peers. Microcap stocks often exhibit higher volatility and risk, which is consistent with the current Strong Sell rating and the stock’s recent performance.
Summary of Key Metrics as of 19 January 2026
To summarise the key figures that underpin the current rating:
- Mojo Score: 14.0 (Strong Sell grade)
- Operating Profit CAGR (5 years): -28.66%
- Debt to EBITDA Ratio: 7.62 times
- Average Return on Equity: 1.88%
- Profit After Tax (9M Sep 2025): ₹1.24 crore, down 64.77%
- Net Sales (Quarterly): ₹17.39 crore, down 5.5%
- Non-operating Income as % of PBT: 322.73%
- Stock Returns (1 Year): -40.48%
- Market Benchmark (BSE500) Returns (1 Year): +7.40%
These metrics collectively highlight the challenges facing Chartered Logistics Ltd and justify the cautious stance reflected in the Strong Sell rating.
Conclusion
In conclusion, Chartered Logistics Ltd’s Strong Sell rating by MarketsMOJO is grounded in a thorough evaluation of its current financial health, operational performance, valuation, and market technicals. While the stock’s valuation appears attractive, the prevailing negative trends and weak quality metrics suggest that investors should approach with caution. The rating update on 23 September 2025 serves as a reminder of the company’s deteriorating fundamentals, but the latest data as of 19 January 2026 confirms that these challenges persist.
Investors seeking exposure to the transport services sector may prefer to consider alternatives with stronger financial profiles and more positive technical signals until Chartered Logistics Ltd demonstrates a credible turnaround.
Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →
