ITL Industries Receives 'Hold' Rating from MarketsMOJO, Shows Positive Results in Q1 2024

ITL Industries, a microcap engineering company, has recently received a 'Hold' rating from MarketsMOJO on July 1, 2024. This downgrade is based on the company's low Debt to Equity ratio, which is at an average of 0.31 times.
However, the company has shown positive results in the first quarter of 2024, with its ROCE (HY) reaching a high of 16.10%, and its NET SALES (Q) and PAT (Q) also reaching their highest at Rs 48.19 crore and Rs 3.26 crore, respectively.

From a technical standpoint, the stock is currently in a bullish range and has shown improvement since June 10, 2024, generating a return of 5.39%. Multiple factors, such as MACD, Bollinger Band, and KST, also indicate a bullish trend for the stock.

With a ROCE of 11.9, the stock is fairly valued with a 2 Enterprise value to Capital Employed. It is also trading at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 98.88%, while its profits have increased by 18.8%. The PEG ratio of the company is 0.8.

The majority of the shareholders of ITL Industries are non-institutional investors. The stock has also shown market-beating performance in the long term, outperforming BSE 500 in the last 3 years, 1 year, and 3 months, with a return of 98.88%.

However, the company has shown poor long-term growth, with its Net Sales and Operating Profit growing at an annual rate of 6.47% and 8.16%, respectively, over the last 5 years.

Overall, while the stock may not be a strong buy at the moment, it is still a good hold for investors looking for a stable and fairly valued option in the engineering industry.