CCL International Receives 'Hold' Rating from MarketsMOJO After Positive Results and Bullish Indicators

CCL International, a microcap trading company, has recently received a 'Hold' rating from MarketsMOJO on March 18, 2024. This upgrade comes after the company reported positive results in December 2023, with a significant growth of 167.25% in net sales and a higher PAT of Rs 0.41 crore.
Technically, the stock is currently in a mildly bullish range, with multiple factors such as MACD, KST, and OBV indicating a bullish trend. Additionally, with a ROCE of 2.5, the stock is attractively valued with a 1 Enterprise value to Capital Employed. It is also trading at a discount compared to its average historical valuations.

Over the past year, CCL International has outperformed the market (BSE 500) with a return of 77.23%, while its profits have risen by 45%. This is reflected in the company's low PEG ratio of 0.6. The majority shareholders of the company are the promoters, indicating their confidence in the company's performance.

However, the company's long-term fundamental strength is weak, with a -215.66% CAGR growth in operating profits over the last 5 years. Its ability to service its debt is also poor, with a low EBIT to Interest (avg) ratio of 0.25. The company's Return on Equity (avg) of 2.32% also signifies low profitability per unit of shareholders' funds.

Overall, while CCL International has shown promising growth in the short term, its long-term fundamentals and debt-servicing ability raise concerns. Investors are advised to hold onto their stocks for now and monitor the company's performance closely.