The Investment Trust of India Receives 'Hold' Rating After Record Breaking Quarter

The Investment Trust of India, a smallcap finance company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes after the company reported positive results in the June 2024 quarter, with a PAT(Q) of Rs 12.39 crore and EPS(Q) of Rs 2.37, the highest in its history.
The stock is currently in a bullish range, with its technical trend improving from mildly bullish to bullish on November 12, 2024. The MACD and KST technical factors also indicate a bullish trend for the stock.

In terms of performance, The Investment Trust of India has outperformed the BSE 500 index in the last 3 years, 1 year, and 3 months, with a return of 119.68% in the last 1 year alone.

However, the company's long-term fundamental strength is weak, with an average ROE of 1.48%. Its net sales have declined at an annual rate of -14.01% and operating profit at -10.33%, indicating poor long-term growth.

The stock also has a very expensive valuation, with a price to book value of 1.6 and a PEG ratio of 0.3. This suggests that the stock is trading at a premium compared to its historical valuations.

Interestingly, despite its small size, domestic mutual funds hold only 0% of the company. This could indicate that they are either not comfortable with the current price or have not conducted in-depth research on the company.

Overall, while The Investment Trust of India has shown strong short-term performance, its long-term fundamentals and expensive valuation may be a cause for concern. Investors may want to hold off on investing in this smallcap finance company until further research is conducted.