Chartered Logistics Faces Volatility Amid Strong Profit Growth and High Debt Concerns

Chartered Logistics has experienced significant volatility today, hitting a new 52-week low of Rs. 7.66. This microcap logistics company has underperformed its sector by 2.31%, marking a continued decline over the past three days with a total drop of 10.47%. The stock is currently trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages, indicating a bearish trend.
In the broader market context, the Sensex opened higher at 74,013.73, gaining 875.83 points, but remains 4.9% away from its own 52-week low. Small-cap stocks are leading the market, with the BSE Small Cap index up by 1.34%.

Despite the recent downturn, Chartered Logistics has reported positive results for the last four consecutive quarters, with a remarkable 202.94% growth in profit after tax for the half-year. However, the company faces challenges, including a high debt-to-EBITDA ratio of 6.98 times and a low return on equity of 0.84%. Over the past year, the stock has generated a return of -3.94%, while its profits have surged by 479%. Promoter holding has decreased to 37.07%, reflecting potential concerns about the company's long-term stability.