ITC Receives 'Buy' Rating from MarketsMOJO Based on Strong Fundamentals and Positive Technical Indicators

ITC, a leading player in the cigarettes/tobacco industry, has recently received a 'Buy' rating from MarketsMOJO. This upgrade is based on the company's strong long-term fundamental strength, with an average Return on Equity (ROE) of 23.77%. Additionally, ITC has shown healthy long-term growth, with an annual net sales growth rate of 7.46%.
One of the key factors contributing to the 'Buy' rating is the company's low Debt to Equity ratio, which is at 0 times on average. This indicates a strong financial position and stability for ITC.

From a technical standpoint, the stock is currently in a bullish range and has shown improvement since 28-Aug-24, generating a return of 2.56% since then. Multiple technical indicators, such as MACD, Bollinger Band, KST, and DOW, also suggest a bullish trend for the stock.

Another positive aspect for ITC is its high institutional holdings at 84.53%. This indicates that these investors have better capabilities and resources to analyze the company's fundamentals compared to retail investors.

However, there are some risks to consider. The company's results for Jun 24 were flat, which could impact its performance in the short term. Additionally, with a ROE of 27.5, the stock is currently trading at a very expensive valuation with a 8.6 Price to Book Value.

Despite these risks, the stock is currently trading at a fair value compared to its average historical valuations. Over the past year, while the stock has generated a return of 15.56%, its profits have only risen by 3%, resulting in a PEG ratio of 13.

In the last 1 year, ITC has underperformed the market (BSE 500) with a return of 15.56%, compared to the market's return of 38.49%. However, with its strong fundamentals and positive technical indicators, the 'Buy' rating from MarketsMOJO suggests that ITC has the potential for long-term growth and should be considered by investors.