Tiger Logistics (India) Downgraded to 'Sell' by MarketsMOJO, But Positive Factors Remain

Tiger Logistics (India) is a microcap logistics company that has recently been downgraded to a 'Sell' by MarketsMOJO on October 1, 2024. This downgrade is due to poor long-term growth, with the company's net sales only growing at an annual rate of -1.76% over the last 5 years. Additionally, the stock is currently in a Mildly Bearish range, with technical trends deteriorating from Mildly Bullish on October 1, 2024. One of the main reasons for the 'Sell' rating is the stock's expensive valuation, with a price to book value of 6. This is significantly higher than its average historical valuations. Despite generating a return of 48.23% in the past year, the company's profits have actually fallen by -24.1%. However, there are some positive factors to consider. Tiger Logistics (India) has a strong ability to service debt, with a low debt to EBITDA ratio of 0.74 times. In addition, the company declared very positive results in June 2024, with a growth in net sales of 140.74% and its highest PAT(Q), NET SALES(Q), and PBDIT(Q) in the last quarter. Furthermore, there has been an increasing participation by institutional investors, with a 0.51% increase in their stake over the previous quarter. These investors have better resources and capabilities to analyze the fundamentals of companies, making their increased interest in Tiger Logistics (India) a positive sign. Despite the recent downgrade, Tiger Logistics (India) has consistently outperformed BSE 500 in the last 3 annual periods and has generated a return of 48.23% in the past year. While the stock may currently be in a Mildly Bearish range, it is important to consider all factors before making any investment decisions.