Tiger Logistics (India) downgraded to 'Hold' by MarketsMOJO due to poor growth and high valuation

Tiger Logistics (India) has recently been downgraded to a 'Hold' by MarketsMOJO due to its poor long-term growth and expensive valuation. The company, which operates in the logistics industry and is classified as a microcap, has shown a strong ability to service its debt with a low Debt to EBITDA ratio of 0.74 times. However, its net sales have only grown by an annual rate of -1.76% over the last 5 years, indicating poor long-term growth.
In terms of recent performance, Tiger Logistics (India) declared very positive results in June 2024 with a growth in net sales of 140.74%. Its net sales for the quarter were at Rs 101.16 crore, while its PAT (profit after tax) and PBDIT (profit before depreciation, interest, and taxes) were at their highest at Rs 4.63 crore and Rs 5.17 crore respectively. However, the stock is currently in a mildly bullish range and is trading at a premium compared to its average historical valuations.

Institutional investors have also increased their stake in the company by 0.51% over the previous quarter, collectively holding 8.7% of the company. This indicates that these investors, who have better resources and capabilities to analyze company fundamentals, have also shown interest in Tiger Logistics (India).

While the stock has generated a return of 26.34% over the past year, its profits have fallen by -24.1%. This, along with a high ROE of 14, has led to a very expensive valuation with a 6 price to book value. Overall, MarketsMOJO has downgraded the stock to a 'Hold' due to its poor long-term growth and expensive valuation. Investors are advised to carefully consider these factors before making any investment decisions.