Mehabe score: 6 G Factor: 4 Piotski Score: 5 The stock has a rating 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 4 and Piotski score of 5.
Description
Continental Chemicals is engaged in the Business of Software consultancy services. Site:CONTCHM Main Symbol:CONTCHM
Stock trades at 143.0, above its 50dma 27.81. It also trades above its 200dma 20.86. The stock remains bullish on techicals
The 52 week high is at 42.30 and the 52week low is at 16.10
Price Chart
P/E Chart
Sales and Margin
Strengths
– has reduced debt.
– is almost debt free.
Weakness
– Stock is trading at 8.37 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of -17.26% over past five years.
– has a low return on equity of 6.91% for last 3 years.
Competition
– The industry trades at a mean P/E of 32.0x. Cont. Chemicals trades at the industry’s max P/E of 161.22x. CONTCHM trades at a P/E of 161.0x
– Industry’s mean G-Factor is 3.4 while the mean Piotski score is 9.0. CONTCHM has a G-Factor of 4 and Piotski scoreof 5.
– Average 1 month return for industry is -14.4%. The max 1- month return was given by Tata Elxsi: a return of 12.66 %
Quarterly Results
Sales for period ended Dec 2021 is Rs 0.19 cr compared to Rs 0.09 cr for period ended Dec 2020, a rise of 111.1% .
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Company reported negative operating profit of Rs -0.1 cr for period ended Dec 2021. For same period last year, operating profit was -0.08.
The EPS for quarter ended Dec 2021 is Rs 0.22 compared to Rs 0.31 for previous quarter ended Sep 2021 and Rs 0.0 for Dec 2020.
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 0.48 cr for period ended TTM vis-vis sales of Rs 0.19 cr for the period ended Mar 2021, a healthy growth of 60.4%. The 3 year sales cagr stood at 36.2%.
Operating margins expanded to -79.17% for period ended TTM vis-vis -252.63% for period ended Mar 2021, expansion of 17346.0 bps.
Net Profit reported at Rs 0.25 cr for period ended TTM vis-vis sales of Rs 0.14 cr for the period ended Mar 2021, rising 44.0%.
Company reported a poor Net Profit CAGR of -9.7% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities: Rs -0.7 cr for period ended Mar 2021 vis-vis Rs -0.94 cr for period ended Mar 2020
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The stock has given a return of 1031% on a 1 Year basis vis-vis a return of % over the last 3 Years. – The compounded sales growth on a TTM bassis is 73% vis-vis a compounded sales growth of -32% over the last 3 Years. – The compounded profit growth on a TTM basis is 400% vis-vis a compounded profit growth of 67% over the last 3 Years.
Ratios
Shareholding Pattern
– Public shareholding has remained largely constant. The Dec 2021 public holding stood at 38.42% vis-vis 38.42% for Sep 2021
Conclusion
– has reduced debt.
– is almost debt free. – Stock is trading at 8.37 times its book value
-Though the company is reporting repeated profits, it is not paying out dividend
-The company has delivered a poor sales growth of -17.26% over past five years.
– has a low return on equity of 6.91% for last 3 years.
The business fundamentals of the stock remain stable. Stronger near term results will build interest in the stock. We suggest to wait for a upturn in business performance.
Technically, the stock remains above its 50 DMA 27.81 and is trading at 143.0, thus bullish price action wise.
