Jet Freight Logistics Receives 'Hold' Rating After Positive Results and Fair Valuation

Jet Freight Logistics, a microcap logistics company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes after the company reported positive results in March 2024, with a lowest debt-to-equity ratio of 0.92 times and a highest profit after tax of Rs 2.67 crore.
Technically, the stock is currently in a mildly bullish range and has shown improvement from a sideways trend on June 5, 2024. Additionally, the DOW has also been mildly bullish since June 5, which is a key technical factor for the stock.

With a return on capital employed of 3.6, Jet Freight Logistics is currently trading at an attractive valuation with an enterprise value to capital employed ratio of 1. This indicates that the stock is trading at a fair value compared to its historical valuations. However, despite generating a return of 14.26% in the past year, the company's profits have fallen by -5%.

On the other hand, Jet Freight Logistics has weak long-term fundamental strength with a -12.54% CAGR growth in operating profits over the last 5 years. The company also has a high debt to EBITDA ratio of 5.31 times, indicating a low ability to service debt. In terms of profitability, the company has a low return on equity of 5.61%, which signifies low profitability per unit of shareholders' funds.

Furthermore, 26.16% of the promoter shares are pledged, which can put additional downward pressure on the stock prices in falling markets. In the last 1 year, Jet Freight Logistics has underperformed the market, generating a return of 14.26% compared to the market's (BSE 500) return of 35.28%.

Overall, while the company has shown positive results and has a fair valuation, it also has some weaknesses in its long-term fundamentals and high promoter pledged shares. Therefore, MarketsMOJO has upgraded the stock to a 'Hold' rating, suggesting a neutral stance for investors.