MarketsMOJO Upgrades Patel Integrated Logistics to 'Hold' Based on Positive Results in June 2024

MarketsMOJO has recently upgraded its stock call on Patel Integrated Logistics to 'Hold' based on positive results in June 2024. The company's PAT (9M) has grown at a rate of 31.01%, while its net sales (HY) have seen a growth of 34.17%. Additionally, the company's cash and cash equivalents (HY) are at a record high of Rs 32.35 crore.
Technically, the stock is in a bullish range and the technical trend has improved from mildly bullish to bullish on 19-Aug-24. Multiple factors such as MACD, Bollinger Band, KST, and OBV are also indicating a bullish trend for the stock.

However, the company's long-term fundamental strength is weak with a -11.16% CAGR growth in operating profits over the last 5 years. Its ability to service its debt is also weak with a poor EBIT to Interest (avg) ratio of 0.89. The company's return on equity (avg) is at a low of 2.91%, indicating low profitability per unit of shareholders' funds.

The stock is currently trading at an expensive valuation with a price to book value of 1.3 and a ROE of 5.1. It is also trading at a premium compared to its average historical valuations. While the stock has generated a return of 38.07% in the past year, its profits have only risen by 24.8%, resulting in a PEG ratio of 1.

Overall, MarketsMOJO has upgraded its stock call on Patel Integrated Logistics to 'Hold' based on its positive results in June 2024. However, investors should be cautious of the company's weak long-term fundamental strength and expensive valuation.