ITL Industries Receives 'Sell' Rating from MarketsMOJO Due to Poor Growth and Financial Ratios

ITL Industries, a microcap engineering company, has recently received a 'Sell' rating from MarketsMOJO on November 19, 2024. This downgrade is based on several factors, including poor long-term growth in net sales and operating profit, as well as flat results in September 2024. The company's debtors turnover ratio is also at its lowest at 5.57 times, indicating potential issues with collecting payments.
In addition, ITL Industries has a low debt to equity ratio and a sideways technical trend, suggesting no clear price momentum. The technical trend has also deteriorated from bullish to -15.13% returns since October 1, 2024. However, the company does have an attractive valuation with a ROCE of 10.6 and a 1.5 enterprise value to capital employed.

Despite generating a return of 33.39% in the past year, ITL Industries' profits have only risen by 25%, resulting in a PEG ratio of 0.5. The majority of the company's shareholders are non-institutional, and it has consistently outperformed the BSE 500 index in the last three annual periods.

Overall, while ITL Industries may have shown some positive returns in the past year, its long-term growth and financial ratios suggest a potential decline in the future. Investors should carefully consider these factors before making any decisions regarding this microcap engineering company.