Indian stock alert

INDIA

CLOSING UPDATE: ITC up 4.5% in 2 days 18 January 2018 17:24 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, extended its gains on Thursday, rising an additional Rs7.35 (or 2.8%) to trade at Rs273.40. Trading volume was 2.1 times average at the end of the day. The shares have risen Rs11.70 (or 4.5%) over the past two trading days vs. the BSE SENSEX Index which has risen 1.4% in the same period.

Technical indicators complementing today's significant uptrend:

+ The positive 1.91 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

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 5.4% of the estimated Enterprise Value of Rs3,305.7 billion (US$51.7 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 25.6% to the 12-month high of Rs367.70 on 10 Jul, 2017. It is at a premium of 11.2% to the 12-month low of Rs245.84 on 19 Jan, 2017.

Bearish Signals:

The stock has underperformed 77% of the Indian market over the past 6 months.

Tobin's Q Ratio is 6. Compared with the rest of the market the stock is overvalued and ranks in the bottom 6% of stocks by value of Q Ratio.

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

Overvaluation:

Price/Earnings/Growth of 6.98 [3.2]

TODAY'S ALERTS

Afternoon Alert: ITC lifts 3.2%, leads CNX FMCG index higher

18 January 2018 13:00 IST

ITC Ltd. (NSE:ITC) has lifted 3.2% to trade at Rs274.55 vs. the CNX FMCG index which strengthened 446.4 points (or 1.6%) to 27,491.1. Representing a weighting of about 29.9% of the index, the stock accounted for 58.0% of today's gain. The shares have outperformed 82% of the market in the past week. Trading volume was 1.8 times average so far today.

Morning Alert: ITC increases 1.0%, leads CNX FMCG index higher

18 January 2018 10:22 IST

ITC Ltd. (NSE:ITC) has increased 1.0% to trade at Rs268.65 vs. the CNX FMCG index which strengthened 144.4 points (or 0.5%) to 27,189.2. Representing a weighting of about 29.5% of the index, the stock accounted for 54.4% of today's gain. Trading volume was 1.1 times average so far today.

RECENT ALERTS

CLOSING UPDATE: ITC increases further 0.5%, led CNX FMCG index higher

17 January 2018 17:18 IST

ITC, India's largest cigarettes, tobacco products company by market capitalisation, has increased 1.7% to trade at Rs266.05 vs. the CNX FMCG index which strengthened 170.2 points (or 0.6%) to 27,044.8. Representing a weighting of about 29.4% of the index, the stock accounted for 77.5% of today's gain. Trading volume was 1.4 times average at the end of the day. Compared with the BSE SENSEX Index which rose 310.8 points (or 0.9%) in the day, this represented a relative price increase of 0.8%.

Afternoon Alert: ITC increases 1.1%, leads CNX FMCG index higher

17 January 2018 13:00 IST

ITC Ltd. (NSE:ITC) has increased 1.1% to trade at Rs264.65 vs. the CNX FMCG index which strengthened 87.6 points (or 0.3%) to 26,962.2. Representing a weighting of about 29.3% of the index, the stock accounted for the gain. Trading volume was 1.5 times average so far today.

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

ISIN: INE154A01025

PermID: 4295872425

Source: www.BuySellSignals.com