CCL International Receives 'Sell' Rating from MarketsMOJO, Concerns Over Long-Term Fundamentals and Debt Servicing

CCL International, a microcap trading company, has recently received a 'Sell' rating from MarketsMOJO. This downgrade is based on the company's weak long-term fundamental strength, with a negative CAGR growth of -215.66% in operating profits over the last 5 years. Additionally, the company's ability to service its debt is also a concern, with a poor EBIT to Interest ratio of 0.25.
Despite positive results in December 2023, with a significant growth in net sales and higher profits, the stock is currently in a mildly bullish range. Technical factors such as MACD and KST also indicate a bullish trend. However, with a ROCE of 2.5, the stock is fairly valued with an enterprise value to capital employed ratio of 1.3.

One positive aspect for investors is that 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 100.20%, while its profits have risen by 45%. This gives the company a PEG ratio of 0.7, which is considered favorable.

It is worth noting that the majority shareholders of CCL International are the promoters themselves. This may raise concerns for some investors, as it could potentially lead to conflicts of interest.

Despite its market-beating performance in the long term and near term, with a return of 100.20% in the last year and outperforming the BSE 500 index in the last 3 years, 1 year, and 3 months, MarketsMOJO's downgrade to 'Sell' may be a cause for caution for potential investors in CCL International.