The Investment Trust of India Receives 'Hold' Rating from MarketsMOJO, Shows Positive Short-Term Growth

The Investment Trust of India, a smallcap finance company, has recently received a 'Hold' rating from MarketsMOJO on October 28, 2024. This upgrade comes after the company reported positive results in June 2024, with a 35.40% growth in its PAT (HY) at Rs 15.91 crore and the highest EPS (Q) at Rs 2.37.
Technically, the stock is currently in a bullish range and has shown improvement from a mildly bullish trend on October 22, 2024. Multiple factors such as MACD, KST, and OBV are also indicating a bullish trend for the stock.

In terms of performance, The Investment Trust of India has outperformed the BSE 500 in the last 3 years, 1 year, and 3 months, with a market-beating return of 148.84% in the last 1 year.

However, the company's long-term fundamental strength is weak, with an average ROE of 1.48%. Its net sales have also shown a negative growth rate of -14.01% and operating profit at -10.33%. Additionally, with a ROE of 2.8, the stock is currently trading at a very expensive valuation with a price to book value of 1.6, which is higher than its historical average.

Moreover, despite its size, domestic mutual funds hold only 0% of the company, which could indicate their discomfort with the stock's current price or business. This is significant as domestic mutual funds have the capability to conduct in-depth research on companies.

In conclusion, while The Investment Trust of India has shown positive results and a bullish trend in the short term, its weak long-term fundamentals and expensive valuation may be a cause for concern. Investors should carefully consider these factors before making any investment decisions.