Investment Trust of India's Stock Upgraded to 'Hold' as Net Sales See 57% Increase.

The Investment Trust of India, a smallcap finance company, has recently caught the attention of investors as its stock call has been upgraded to 'Hold' by MarketsMOJO on November 18, 2024.
The company has shown a positive growth in its Net Sales, with a 57.03% increase, leading to very positive results in the quarter ending September 2024. This is the second consecutive quarter where the company has declared positive results. In fact, its NET SALES(Q) reached a record high of Rs 111.19 crore, while PBDIT(Q) and PBT LESS OI(Q) also saw their highest numbers at Rs 23.61 crore and Rs 17.74 crore respectively.

Technically, the stock is currently in a Mildly Bullish range, with both its MACD and KST technical factors showing a bullish trend. In terms of performance, the stock has not only generated impressive returns of 108.17% in the last 1 year, but has also outperformed BSE 500 in the last 3 years, 1 year, and 3 months.

However, the company's long term fundamental strength is weak, with an average Return on Equity (ROE) of 3.82%. Its Net Sales and Operating profit have shown a negative growth rate of -11.49% and -19.96% respectively. Additionally, with a ROE of 6.1, the stock is currently trading at an expensive valuation with a 1.5 Price to Book Value. However, it is worth noting that the stock is currently trading at a discount compared to its average historical valuations.

Despite its smallcap size, the company has not gained much interest from domestic mutual funds, with them holding only 0% of the company. This could be due to their capability to conduct in-depth research on companies, and their small stake may signify their discomfort with the current price or the business.

In conclusion, while The Investment Trust of India has shown promising results in the short term, its long term fundamentals and valuation may be a cause for concern. Investors should carefully consider these factors before making any investment decisions.