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

CCL International, a microcap trading company, has recently received a 'Hold' rating from MarketsMOJO on March 5th, 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 bullish range and has shown improvement from a mildly bullish trend on March 2nd, 2024. Multiple factors such as MACD, Bollinger Band, KST, and OBV are also indicating a bullish trend for the stock.

With a ROCE of 2.5, the stock is fairly valued and has an enterprise value to capital employed ratio of 1.3. Additionally, the stock is currently trading at a discount compared to its average historical valuations. In the past year, the stock has generated a return of 107.10%, while its profits have increased by 45%. The PEG ratio of the company is also at a favorable 0.8.

The majority shareholders of CCL International are the promoters, indicating their confidence in the company's performance. The stock has also shown market-beating performance in the long term, outperforming BSE 500 in the last 3 years, 1 year, and 3 months.

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

Overall, while CCL International has shown positive growth and a bullish trend in the short term, its long-term fundamental strength and profitability may be a cause for concern. Investors are advised to hold their positions and monitor the company's performance closely.