Mehabe score: 4 G Factor: 1 Piotski Score: 4 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 1 and Piotski score of 4.
Description
Consolidated Construction Consortium Limited offers construction services. The Company is engaged in construction design, engineering, procurement, construction and project management.Site:CCCLMain Symbol:CCCL
Stock trades at 0.8, above its 50dma 0.67. It also trades above its 200dma 0.66. The stock remains bullish on techicals
The 52 week high is at 0.90 and the 52week low is at 0.25
Price Chart
P/E Chart
Sales and Margin
Strengths
–
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -12.76% over past five years.
-Promoter holding is low: 15.51%
-Contingent liabilities of Rs.212.49 Cr.
-Promoters have pledged 76.20% of their holding.
– has high debtors of 213.90 days.
Competition
– The industry trades at a mean P/E of 36.0x. National Standar trades at the industry’s max P/E of 1385.96x. CCCL trades at a P/E of x
– Industry’s mean G-Factor is 4.1 while the mean Piotski score is 7.0. CCCL has a G-Factor of 1 and Piotski scoreof 4.
– Average 1 month return for industry is 3.3%. The max 1- month return was given by National Standar: a return of 38.61 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 40.0 cr compared to Rs 59.0 cr for period ended Sep 2020, a fall of 32.2%
Company reported negative operating profit of Rs -3.0 cr for period ended Sep 2021. For same period last year, operating profit was -13.0
The EPS for Sep 2021 was Rs -0.62 compared to Rs -0.58 for previous quarter ended Jun 2021 and Rs -0.75 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 205.0 cr for period ended TTM vis-vis sales of Rs 204.0 cr for the period ended Mar 2021, a growth of 0.5%. The 3 year sales cagr stood at -23.9%.
Operating margins expanded to -18.0% for period ended TTM vis-vis -23.0% for period ended Mar 2021, expansion of 500.0 bps.
Net Profit reported at Rs -96.0 cr for period ended TTM vis-vis sales of Rs -103.0 cr for the period ended Mar 2021, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 167% 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 -14% vis-vis a compounded sales growth of -24% over the last 3 Years. – The compounded profit growth on a TTM basis is 25% vis-vis a compounded profit growth of -3% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Sep 2021 fii holding stood at 0.0% vis-vis 0.0% for Jun 2021 – Public shareholding has remained largely constant. The Sep 2021 public holding stood at 26.5% vis-vis 26.49% for Jun 2021
Conclusion
– – has low interest coverage ratio.
-The company has delivered a poor sales growth of -12.76% over past five years.
-Promoter holding is low: 15.51%
-Contingent liabilities of Rs.212.49 Cr.
-Promoters have pledged 76.20% of their holding.
– has high debtors of 213.90 days.
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 0.67 and is trading at 0.8 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
