International Travel House Downgraded to 'Hold'

International Travel House, a microcap company in the travel services industry, has recently been downgraded to a 'Hold' by MarketsMOJO on 2023-07-20. This decision was based on a neutral and informative analysis of the company's current performance.
Despite declaring positive results for the last 9 consecutive quarters, with a PAT (HY) of Rs 11.44 crore and a growth of 36.35%, the company's stock is currently in a bullish range. The technical trend has also improved, generating a return of 2.34% since 05-Dec-23. Multiple factors such as MACD, Bollinger Band, KST, and OBV are also indicating a bullish trend for the stock.

Moreover, with a ROE of 23.9 and a price to book value of 2.6, the stock is currently trading at a discount compared to its historical valuations. In the past year, the stock has generated a return of 80.56%, while its profits have risen by 239.4%. This has resulted in a low PEG ratio of 0.1, making the company's valuation very attractive.

The majority shareholders of International Travel House are its promoters, indicating their confidence in the company's performance. The company has also consistently outperformed BSE 500 in the last 3 annual periods, further showcasing its strong performance.

However, the company's long-term fundamental strength is weak, with a -0.39% CAGR growth in net sales over the last 5 years. Additionally, its ability to service its debt is poor, with a low EBIT to Interest (avg) ratio of -10.51. The company's Return on Equity (avg) of 4.94% also signifies low profitability per unit of shareholders' funds.

In conclusion, while International Travel House has shown strong performance in the short term, its long-term fundamentals and debt-servicing ability may be a cause for concern. Investors are advised to hold their positions and monitor the company's performance closely.