Jet Freight Logistics Ltd is Rated Sell

Current Rating and Its Significance

MarketsMOJO’s current Sell rating on Jet Freight Logistics Ltd indicates a cautious stance for investors. This rating suggests that the stock is expected to underperform relative to the broader market or its sector peers in the near to medium term. Investors should consider this recommendation carefully, as it reflects a combination of the company’s quality, valuation, financial trends, and technical outlook as assessed today.

Quality Assessment: Below Average Fundamentals

As of 16 February 2026, Jet Freight Logistics Ltd exhibits below average quality metrics. The company’s long-term fundamental strength remains weak, with a negative compound annual growth rate (CAGR) of -1.67% in net sales over the past five years. This contraction in revenue signals challenges in expanding its core business operations.

Profitability metrics also highlight concerns. The average return on equity (ROE) stands at a modest 8.30%, indicating limited efficiency in generating profits from shareholders’ funds. Additionally, the company’s ability to service debt is strained, with a high Debt to EBITDA ratio of 6.15 times, suggesting elevated leverage and potential financial risk.

Valuation: Very Attractive but Reflective of Risks

Despite the quality concerns, Jet Freight Logistics Ltd’s valuation is currently very attractive. This suggests that the stock price is low relative to its earnings, book value, or cash flow, potentially offering value for investors willing to accept the associated risks. However, the low valuation may also reflect market apprehension about the company’s growth prospects and financial health.

Financial Trend: Flat Performance with Rising Interest Costs

The company’s financial trend remains flat as of 16 February 2026. The latest quarterly results for December 2025 show no significant growth, with interest expenses rising sharply by 30.26% to ₹1.98 crores. This increase in interest burden further pressures profitability and cash flow, limiting the company’s ability to invest in growth or reduce debt.

Moreover, promoter shareholding dynamics add to the risk profile. Currently, 26.16% of promoter shares are pledged, an increase of 13.89% over the last quarter. High pledged shares can exert downward pressure on stock prices during market downturns, as forced selling may occur to meet margin calls.

Technical Outlook: Mildly Bullish but Insufficient to Offset Fundamentals

Technically, the stock shows a mildly bullish trend, with positive momentum over the past three and six months. Specifically, the stock has delivered returns of +15.07% over three months and +21.30% over six months, with a one-year return of +22.47% as of 16 February 2026. Year-to-date gains stand at +1.97%, though recent short-term performance has been weaker, with a 1-day decline of -2.53% and a 1-week drop of -4.22%.

While these technical signals indicate some buying interest and recovery potential, they are not strong enough to outweigh the company’s fundamental weaknesses and financial risks, which underpin the current Sell rating.

Summary for Investors

In summary, Jet Freight Logistics Ltd’s current Sell rating by MarketsMOJO reflects a comprehensive evaluation of its below average quality, very attractive valuation, flat financial trend, and mildly bullish technicals. Investors should be aware that while the stock may appear undervalued, the company faces significant challenges including declining sales, rising debt servicing costs, and increased promoter share pledging.

Those considering exposure to this stock should weigh the potential for value against the risks of financial instability and limited growth. The Sell rating advises caution and suggests that investors may want to explore alternative opportunities within the transport services sector or broader market.

Market Capitalisation and Sector Context

Jet Freight Logistics Ltd is classified as a microcap company within the transport services sector. Microcap stocks often carry higher volatility and risk compared to larger peers, which is reflected in the company’s current rating and financial profile. Investors should consider the sector’s cyclical nature and the company’s specific operational challenges when evaluating this stock.

Mojo Score and Grade

The company’s Mojo Score currently stands at 47.0, categorised as a Sell grade. This score has declined by 7 points from 54, which was the previous Hold grade before 01 February 2026. The Mojo Score aggregates multiple factors including quality, valuation, financial trend, and technicals to provide a holistic view of the stock’s investment appeal.

Returns Overview

As of 16 February 2026, Jet Freight Logistics Ltd’s stock returns show mixed performance. While the one-year return is a positive 22.47%, recent short-term returns have been negative, with a 1-day loss of 2.53% and a 1-week decline of 4.22%. The stock’s performance over the last three and six months has been stronger, with gains of 15.07% and 21.30% respectively, indicating some recovery momentum despite underlying fundamental concerns.

Risks Related to Promoter Shareholding

Investors should note the elevated risk associated with promoter share pledging. Currently, 26.16% of promoter shares are pledged, which has increased significantly in the last quarter. This situation can lead to forced selling in adverse market conditions, potentially exacerbating downward pressure on the stock price.

Conclusion

Jet Freight Logistics Ltd’s Sell rating by MarketsMOJO is a reflection of its current financial and operational challenges, despite some attractive valuation and technical signals. Investors are advised to approach this stock with caution, considering the risks posed by weak fundamentals, rising debt costs, and promoter share pledging. The rating serves as a guide to prioritise capital allocation towards stocks with stronger quality and growth prospects within the transport services sector or broader market.

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