Inter State Oil Carrier Receives 'Hold' Rating After Strong Quarter Results

Inter State Oil Carrier, 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 four consecutive quarters, with a significant growth of 62.97% in net sales in the last half year.
Technically, the stock is in a mildly bullish range and has shown improvement from a sideways trend on 30-Sep-24. Multiple factors such as MACD, Bollinger Band, KST, and OBV indicate a bullish trend for the stock.

With a ROCE of 6.1, the company has an attractive valuation with a 1.1 Enterprise value to Capital Employed. However, the stock is currently trading at a premium compared to its average historical valuations. In the past year, the stock has generated a return of 23.29%, but its profits have fallen by -14%.

The majority shareholders of Inter State Oil Carrier are non-institutional investors. The company also has weak long-term fundamental strength, with a -12.68% CAGR growth in operating profits over the last five years. Additionally, the company has a high debt to EBITDA ratio of 4.38 times, indicating a low ability to service debt. The return on equity (avg) of 7.44% also signifies low profitability per unit of shareholders' funds.

In the last year, the stock has underperformed the market, generating a return of 23.29% compared to the market (BSE 500) returns of 39.48%. Overall, while the company has shown positive results in recent quarters, its long-term fundamentals and underperformance in the market may be a cause for concern for potential investors.