Inter State Oil Carrier Shows Mixed Performance Amid Declining Profits and High Debt Levels

Inter State Oil Carrier, a microcap player in the logistics industry, has shown notable performance metrics despite some underlying challenges. The company has generated a return of 30.20% over the past year, outperforming the BSE 500 index in both the short and long term. However, this impressive return comes alongside a significant decline in profits, which have fallen by 115.9% during the same period.
Financially, Inter State Oil Carrier boasts a Return on Capital Employed (ROCE) of 4.9, indicating an attractive valuation with an enterprise value to capital employed ratio of 1.2. The stock is currently trading at a discount compared to its historical valuations, suggesting potential value for investors.

Despite these positive indicators, the company faces challenges with a high Debt to EBITDA ratio of 4.38, reflecting a low ability to service its debt. Additionally, the long-term fundamental strength appears weak, with a compound annual growth rate (CAGR) of -12.68% in operating profits over the last five years. The average Return on Equity stands at 7.44%, highlighting low profitability per unit of shareholders' funds. Overall, while Inter State Oil Carrier has demonstrated market-beating performance, its financial health warrants careful consideration.