Chartered Logistics Adjusts Valuation Amid Declining Profits and Increased Promoter Confidence

Chartered Logistics, a microcap player in the transport services industry, has recently undergone an adjustment in its evaluation. The company's valuation grade has transitioned from very attractive to attractive, reflecting a shift in its financial metrics.
Currently, Chartered Logistics has a price-to-earnings (PE) ratio of 47.29, which indicates a relatively high valuation compared to its earnings. The price-to-book value stands at 1.59, suggesting that the stock is trading at a premium to its book value. Additionally, the enterprise value to EBITDA ratio is noted at 43.34, while the enterprise value to EBIT is significantly higher at 95.14, indicating a substantial valuation in relation to its earnings before interest and taxes.

The company's return on capital employed (ROCE) is reported at 2.53%, and the return on equity (ROE) is at 3.35%, both of which suggest modest profitability levels. Furthermore, the company has experienced a decline in operating profits over the past five years, with a compound annual growth rate (CAGR) of -20.57%.

Despite these challenges, promoter holding has increased to 44.87%, which may reflect confidence in the company's long-term prospects.

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