Chartered Logistics Receives 'Hold' Rating After Positive Results and Attractive Valuation

Chartered Logistics, a microcap logistics company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes after the company has shown positive results for the last three consecutive quarters, with a higher PAT (HY) of Rs 1.61 crore. The stock is currently in a mildly bullish range and its technical factors, such as MACD and KST, are also bullish.
One of the reasons for the 'Hold' rating is the company's attractive valuation, with a ROCE of 2.5 and an enterprise value to capital employed ratio of 1.8. Additionally, the stock is currently trading at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 91.80%, while its profits have risen by 202%. The PEG ratio of the company is also at a low 0.1.

However, there are some concerns about the company's long-term fundamental strength. Over the last 5 years, the company has shown a -21.38% CAGR growth in operating profits, indicating weak performance. The company also has a high debt to EBITDA ratio of 9.61 times, which may affect its ability to service debt. Additionally, the company has a low return on equity (avg) of 0.05%, indicating low profitability per unit of shareholders' funds.

It is worth noting that the majority of shareholders in Chartered Logistics are non-institutional investors. Despite these concerns, the stock has outperformed the market (BSE 500) with a return of 91.80% in the last year, compared to the market's return of 23.90%. Overall, while the company has shown positive results in recent quarters, its long-term fundamental strength and high debt levels may be cause for caution.