Tiger Logistics: A Promising Investment Opportunity with Strong Financial Performance and Increasing Institutional Interest

Oct 15 2024 06:30 PM IST
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Tiger Logistics (India) has been upgraded to a 'Buy' by MarketsMojo due to its strong ability to service debt and impressive financial performance. The company's stock is currently in a bullish range and has consistently outperformed the BSE 500 index. However, investors should be aware of potential risks before investing.
Tiger Logistics (India) has been making waves in the logistics industry with its impressive financial performance. The company's stock has recently been upgraded to a 'Buy' by MarketsMOJO, a leading stock analysis platform. This upgrade is based on several positive factors that make Tiger Logistics a promising investment opportunity.

One of the key reasons for the 'Buy' rating is the company's strong ability to service debt. With a low Debt to EBITDA ratio of 0.74 times, Tiger Logistics is in a good position to manage its debt and maintain financial stability. This is a crucial factor for investors, as it indicates the company's ability to weather any financial challenges.

In terms of financial performance, Tiger Logistics has shown remarkable growth in the past year. Its Net Sales have increased by 140.74%, leading to a very positive result in June 2024. The company's PAT (profit after tax) and PBDIT (profit before depreciation, interest, and taxes) have also reached their highest levels at Rs 4.63 crore and Rs 5.17 crore respectively. This impressive growth is a testament to the company's strong business strategies and efficient operations.

From a technical standpoint, Tiger Logistics' stock is currently in a bullish range. The technical trend has improved from mildly bullish to bullish on 15th October 2024. This is supported by multiple factors such as MACD, Bollinger Band, KST, and OBV, all indicating a positive outlook for the stock.

Another positive aspect of Tiger Logistics is the increasing participation of institutional investors. These investors have increased their stake in the company by 0.51% over the previous quarter and now collectively hold 8.7% of the company. This is a strong vote of confidence in the company's potential and capabilities.

Tiger Logistics has also consistently delivered strong returns over the last three years, outperforming the BSE 500 index. In the last year alone, the stock has generated a return of 54.04%. However, there are some risks that investors should be aware of, such as poor long-term growth and a relatively expensive valuation with a price to book value of 6.4. Additionally, while the stock has seen a significant increase in returns, its profits have declined by -24.1% in the past year.

In conclusion, Tiger Logistics (India) is a microcap company with a lot of potential in the logistics industry. Its strong financial performance, increasing institutional interest, and consistent returns make it a promising investment opportunity. However, investors should also consider the potential risks before making any investment decisions.
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