Mehabe score: 4 G Factor: 2 Piotski Score: 9 The stock has a rating OBSERVE & HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 2 and Piotski score of 9.
Description
CCL International Limited Is also involved in the infrastructure division/civil engineering works comprising work contract operations, and land/plots/residential unit commercial complex. Site:CCLINTER Main Symbol:CCLINTER
Stock trades at 26.2, above its 50dma 22.75. It also trades above its 200dma 18.26. The stock remains bullish on techicals
The 52 week high is at 33.35 and the 52week low is at 12.35
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
-Stock is trading at 1.12 times its book value
-Debtor days have improved from 157.87 to 112.97 days.
Weakness
– Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -16.88% over past five years.
– has a low return on equity of 0.40% for last 3 years.
Competition
– The industry trades at a mean P/E of 41.5x. Adani Enterp. trades at the industry’s max P/E of 167.47x. CCLINTER trades at a P/E of x
– Industry’s mean G-Factor is 3.1 while the mean Piotski score is 9.0. CCLINTER has a G-Factor of 2 and Piotski scoreof 9.
– Average 1 month return for industry is 3.4%. The max 1- month return was given by MMTC: a return of 22.27 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 5.21 cr compared to Rs 6.59 cr for period ended Dec 2020, a fall of 20.9%
.
vis-vis 0.76 for period ended Dec 2020 .
Operating Margins contracted -1134.1 bps for period ended Dec 2021 vis-vis Dec 2020.
Company reported operating profit of Rs 0.01 cr for period ended Dec 2021 and operating profit margin at 0.2 % for same period.
The EPS for quarter ended Dec 2021 is Rs -0.4 compared to Rs -0.62 for previous quarter ended Sep 2021 and Rs 0.01 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 24.3 cr for period ended TTM vis-vis sales of Rs 30.08 cr for the period ended Mar 2021, a fall of 23.8%. The 3 year sales cagr stood at -13.2%.
Operating margins shrank to 9.75% for period ended TTM vis-vis 13.1% for period ended Mar 2021, contraction of 335.0 bps.
Net Profit reported at Rs -1.15 cr for period ended TTM vis-vis sales of Rs 0.48 cr for the period ended Mar 2021, falling 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 9.68 cr for period ended Mar 2021 vis-vis Rs 1.99 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 1.0% compared to 0.0% over the last 3 Years. – The stock has given a return of 64% on a 1 Year basis vis-vis a return of 30% over the last 3 Years. – The compounded sales growth on a TTM bassis is 5% vis-vis a compounded sales growth of -3% over the last 3 Years. – The compounded profit growth on a TTM basis is -122% vis-vis a compounded profit growth of -9% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Dec 2021 fii holding stood at 0.01% vis-vis 0.02% for Sep 2021 – Public shareholding has remained largely constant. The Dec 2021 public holding stood at 43.43% vis-vis 43.49% for Sep 2021
Conclusion
– has reduced debt.
-Stock is trading at 1.12 times its book value
-Debtor days have improved from 157.87 to 112.97 days. – Though the company is reporting repeated profits, it is not paying out dividend
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -16.88% over past five years.
– has a low return on equity of 0.40% for last 3 years.
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 22.75 and is trading at 26.2 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
