IIFL Finance Receives 'Hold' Rating from MarketsMOJO, Strong Fundamentals and Bullish Trends Indicate Potential

IIFL Finance, a largecap finance company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade is based on the company's strong long-term fundamental strength, with an average Return on Equity (ROE) of 15.76%. The stock is also currently in a mildly bullish range, with technical trends improving from mildly bearish on 20-Sep-24.
Multiple factors, such as MACD, Bollinger Band, and OBV, are also indicating a bullish trend for the stock. Additionally, with an ROE of 16.6, the stock is currently trading at an attractive valuation with a price to book value of 2.1. This is in line with its average historical valuations.

Despite generating a return of -7.44% in the past year, the company's profits have risen by 1.9%. This is a positive sign for investors. Furthermore, the stock has a high institutional holding of 37.75%, indicating that these investors have better capabilities and resources to analyze the company's fundamentals.

However, the company has shown poor long-term growth, with net sales growing at an annual rate of 16.13% and operating profit at 5.04%. In addition, the company's results for Jun 24 have been negative, with PAT(Q) at Rs 288.06 cr falling by -32.3% and PBT LESS OI(Q) at its lowest at Rs 424.17 cr. The EPS(Q) has also been at its lowest at Rs 6.79.

In the last year, IIFL Finance has underperformed the market, with the stock generating negative returns of -7.44% while the market (BSE 500) has generated returns of 37.95%. However, with its strong fundamental strength and attractive valuation, the stock has been upgraded to a 'Hold' by MarketsMOJO.