VRL Logistics Receives 'Hold' Rating, Mixed Performance

VRL Logistics, a midcap logistics company, has recently received a 'Hold' rating from MarketsMOJO on November 13, 2023. The stock is currently in a Mildly Bullish range and has shown a technical improvement since November 12, 2023, with a 6.17% return. The MACD and Bollinger Band technical factors are also Bullish, indicating a positive trend for the stock.
While the stock has consistently generated returns of 25.25% in the last year, it has shown poor long-term growth with a 6.43% annual growth rate in Net Sales and 13.84% in Operating profit over the last 5 years. The company's results for September 2023 were also flat, with the lowest ROCE (HY) at 5.69%, lowest OPERATING PROFIT TO INTEREST (Q) at 4.96 times, and highest DEBT-EQUITY RATIO (HY) at 1.00 times.

At a ROCE of 12.3, the stock is currently trading at an expensive valuation with a 3.9 Enterprise value to Capital Employed. However, it is still trading at a discount compared to its average historical valuations. Despite generating a return of 25.25% in the past year, the company's profits have fallen by -14.4%.

In addition, there has been a decrease in promoter confidence as they have reduced their stake in the company by -4% in the previous quarter and currently hold 60.24% of the company. This decrease in stake may indicate a lack of confidence in the future of the business.

Overall, while VRL Logistics has shown positive technical trends and consistent returns in the short term, its long-term growth and profitability may be a cause for concern. Investors may want to hold off on investing in this midcap logistics company until there is a more positive outlook for its financials and promoter confidence.