Inter State Oil Carrier Receives 'Sell' Rating from MarketsMOJO, Indicating Weak Fundamentals

Inter State Oil Carrier, a microcap logistics company, has recently received a 'Sell' rating from MarketsMOJO. This downgrade is based on the company's weak long-term fundamental strength, low ability to service debt, and low profitability per unit of shareholders' funds.
According to MarketsMOJO, Inter State Oil Carrier has only seen a 21.89% CAGR growth in operating profits over the last 5 years, indicating a lack of strong growth potential. Additionally, the company has a high debt to EBITDA ratio of 0 times, which could make it difficult for them to manage their debt obligations.

From a technical standpoint, the stock is currently in a mildly bearish range and has seen a deterioration in its trend since May 23, 2024. This has resulted in a -5% return for investors. Multiple factors, such as RSI, Bollinger Band, and KST, are also indicating a bearish outlook for the stock.

However, there are some positive factors to consider. Inter State Oil Carrier has declared positive results for the last 3 consecutive quarters, with a 35.9% growth in net sales. It also has a very attractive valuation with a ROCE of 5.8 and a 1.1 enterprise value to capital employed. Additionally, the stock is currently trading at a discount compared to its average historical valuations.

Despite generating a return of 42.73% in the past year, the company's profits have fallen by -42.5%. This could be a concern for investors, especially since the majority of shareholders are non-institutional.

On a brighter note, Inter State Oil Carrier has consistently outperformed the BSE 500 index in the last 3 annual periods, showcasing its ability to generate returns for investors. However, with the recent downgrade from MarketsMOJO, it may be wise for investors to approach this stock with caution.