Jet Freight Logistics Receives 'Hold' Rating After Positive Results, But Weak Fundamentals Remain

Jet Freight Logistics, 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 three consecutive quarters. Its operating cash flow has been the highest at Rs 15.01 crore and its profit after tax has also increased to Rs 1.65 crore.
Technically, the stock is currently in a mildly bullish range and has shown improvement from a sideways trend on 11 November 2024. One key technical factor, the Bollinger Band, has been bullish since the same date.

With a ROCE of 3.6, Jet Freight Logistics has an attractive valuation with an enterprise value to capital employed ratio of 1.1. 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 30.83%, while its profits have risen by 186.4%. The PEG ratio of the company is 0.1.

On the other hand, the company has weak long-term fundamental strength with a 9.24% CAGR growth in operating profits over the last five years. It also has a low ability to service debt with a high debt to EBITDA ratio of 5.31 times. Additionally, the company has a low return on equity (average) of 3.74%, indicating low profitability per unit of shareholders' funds.

It is worth noting that 26.16% of the promoter shares are pledged, which could put additional downward pressure on the stock prices in falling markets. Overall, while Jet Freight Logistics has shown positive results in recent quarters, it is important to consider its weak long-term fundamentals and high promoter pledged shares before making any investment decisions.