Indian stock alert

INDIA

CLOSING UPDATE: ITC increases 1.2%, led CNX FMCG index higher 18 October 2017 17:10 IST

NEWS BITES - BRIC

This is an end of day Alert, produced after today's Indian market close. It concludes the BSS News Bites intra-day Alert series (summaries below).

ITC, India's largest cigarettes, tobacco products company by market capitalisation, has increased 1.2% to trade at Rs270.35 vs. the CNX FMCG index which strengthened 63.1 points (or 0.2%) to 25,684.0. Representing a weighting of about 32.1% of the index, the stock accounted for the gain. Trading volume was 57% of average at the end of the day. Compared with the BSE SENSEX Index which fell 24.8 points (or 0.08%) in the day, this represented a relative price increase of 1.2%.

Technical indicators complementing today's significant uptrend:

+ The price increased 1.9% in the last week and 1.3% in the last month.

Other Bullish Signals include:

+ Total Liabilities/EBITDA of 0.5 is comfortably below the Joseph Piotroski benchmark of <5.

+ Net profit margin has averaged 17.4% in the last 3 years. This is considered superior and suggests a high margin of safety.

+ The Brand Value represents 5.6% of the estimated Enterprise Value of Rs3,268.6 billion (US$50.3 billion).

+ As per the Du Pont analysis, Return on Equity is high at 22.6%. Also, this has improved from 22.3% last year.

Note

ITC today is at a discount of 26.5% to the 12-month high of Rs367.70 on 10 Jul, 2017. It is at a premium of 23.6% to the 12-month low of Rs218.70 on 26 Dec, 2016.

Bearish Signals:

The negative 1.53 MACD (Moving Average Convergence Divergence) indicator suggests a bearish signal.

Tobin's Q Ratio is 5.9. Compared with the rest of the market the stock is overvalued and ranks in the bottom 7% of stocks by value of Q Ratio.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Overvaluation:

Price/Earnings/Growth of 6.9 [3.0]

TODAY'S ALERT

Morning Alert: ITC increases 0.1%

18 October 2017 10:16 IST

ITC Ltd. (NSE:ITC) traded on volume of 0.6 times average so far today while the price increased Rs0.20 (or 0.1%) to trade at Rs267.45.

RECENT ALERTS

CLOSING UPDATE: ITC increases losses by 0.2%, led Cigarettes, Tobacco products sector lower

17 October 2017 17:10 IST

ITC, India's largest cigarettes, tobacco products company by market capitalisation, has decreased 0.1% to trade at Rs267.25 vs. the Cigarettes, Tobacco products sector which weakened 29.3 points (or 0.05%) to 64,240.4. Representing a weighting of about 97.0% of the sector, the stock accounted for the loss. The shares have underperformed 86% of the market in the past three months. Trading volume was 83% of average at the end of the day. Compared with the BSE SENSEX Index which fell 24.5 points (or 0.08%) in the day, this represented a relative price change of -0.01%.

Morning Alert: ITC decreases 0.3%, leads Cigarettes, Tobacco products sector lower

17 October 2017 10:17 IST

ITC Ltd. (NSE:ITC) has decreased 0.3% to trade at Rs266.80 vs. the Cigarettes, Tobacco products sector which weakened 160.5 points (or 0.2%) to 64,109.2. Representing a weighting of about 97.0% of the sector, the stock accounted for the loss. The shares have underperformed 90% of the market in the past three months. Trading volume was 64% of average so far today.

ITC Ltd. (NSE:ITC; BSE:ITC; NS:ITC; IN:ITC)

ISIN: INE154A01025

PermID: 4295872425

Source: www.BuySellSignals.com