Snowman Logistics: A Smallcap Company with Impressive Performance and 'Buy' Recommendation from MarketsMOJO

Snowman Logistics, a smallcap logistics company, has recently caught the attention of investors with its impressive performance. MarketsMOJO has upgraded its stock call to 'Buy' on February 15, 2024, citing healthy long-term growth and positive results for the past 7 consecutive quarters.
One of the key factors contributing to the 'Buy' recommendation is the company's strong operating profit growth, which has seen an annual rate of 52.09%. In the last 9 months, Snowman Logistics has recorded a growth of 23.43% in net sales and 27.23% in profits. Its operating profit to interest ratio is also at a high of 4.49 times, indicating a strong ability to cover its interest expenses.

From a technical standpoint, the stock is currently in a mildly bullish range and has shown improvement since February 15, 2024. The MACD and KST technical factors are also bullish, further supporting the 'Buy' recommendation.

In terms of valuation, Snowman Logistics is trading at a discount compared to its historical average. Its ROCE of 5.7 and PEG ratio of 0.4 make it an attractive investment option. Additionally, the company's promoters have shown confidence in its future by increasing their stake by 1.27% in the previous quarter.

The stock has also outperformed the market (BSE 500) with a return of 93.00% in the last year, showcasing its strong performance. However, there are some risks to consider, such as the company's weak ability to service its debt and low profitability per unit of shareholders' funds.

Overall, Snowman Logistics is a promising smallcap company in the logistics industry with a strong track record and potential for future growth. With a 'Buy' recommendation from MarketsMOJO and positive financial indicators, it is definitely a stock to keep an eye on.