CCL International Receives 'Hold' Rating After Strong Q1 Results, Bullish Technical Trend

CCL International, a microcap trading company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade comes after the company reported very positive results for the quarter ending March 2024, with a growth in net sales of 86.61%. This marks the second consecutive quarter of positive results for the company.
The stock is currently in a bullish range and has shown improvement in its technical trend since July 19, 2024, generating a return of -1.99% since then. Multiple factors, such as MACD, Bollinger Band, and KST, indicate a bullish outlook for the stock.

In terms of valuation, CCL International has a very attractive ROCE of 2.5 and an enterprise value to capital employed ratio of 1.3. The stock is currently trading at a discount compared to its historical valuations. Over the past year, the stock has generated a return of 48.51%, while its profits have increased by 205.8%. This results in a low PEG ratio of 0.2 for the company.

The majority shareholders of CCL International are its promoters, indicating their confidence in the company's performance. The stock has also outperformed the BSE 500 index in the last 3 years, 1 year, and 3 months, showcasing its market-beating 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. Additionally, its ability to service debt is poor, with a low EBIT to interest ratio of 0.25. The company's return on equity is also low at 2.32%, indicating low profitability per unit of shareholders' funds.

Overall, while CCL International has shown positive results in the short term, its long-term fundamentals and debt-servicing ability may be a cause for concern. Investors are advised to hold onto their stocks for now and monitor the company's performance closely.