CCL Internationa (531900)

Score breakdown: P/E: 2/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Trades near book value with P/B of 1.09 and book value ₹27.32 versus price ₹29.86, limiting downside if assets are honestly valued.
• Piotroski F-Score of 7/9 suggests recent improvement in financial fundamentals.
• Sales growth of 14.29% and profit growth of 59.85% show momentum; PEG of 0.53 looks attractive on a growth-adjusted basis.
• Small market cap of ₹60 Cr gives room for niche expansion in civil construction if execution improves.

Concerns

• ROE of 5.54% and ROCE of 3.35% are weak, indicating poor capital efficiency and likely no durable moat.
• Latest quarter shows a net loss of ₹1 Cr on sales of only ₹3 Cr, pointing to deteriorating near-term earnings.
• No dividend yield means shareholders earn nothing while waiting, so total return depends entirely on price appreciation.
• Promoter holding and debt/equity are N/A, leaving crucial governance and leverage questions unanswered.

AI Analysis

At ₹29.86, CCL International is a tiny civil construction play with a market cap of just ₹60 crore. I start with the balance sheet: book value is ₹27.32, so I pay roughly 1.09 times book. That is not expensive on a stated basis. The Piotroski score of 7/9 is also respectable and suggests the company has improved on some operating metrics. Reported sales growth is 14.29% and profit growth is 59.85%, giving a PEG of 0.53. But I have learned never to treat a single ratio as an invitation. This is a commodity-like construction business with no obvious moat, and returns on capital are weak: ROE is only 5.54%, ROCE only 3.35%. That tells me the enterprise does not earn an attractive return on the money invested in it. The latest quarter adds another red flag: sales of just ₹3 crore and a net loss of ₹1 crore. A company that is losing money in the most recent quarter cannot be valued on a trailing P/E of 19.48 with confidence. The high profit growth may be from a low base or a one-off, not from durable business quality. Also absent are promoter holding and debt/equity data, so I cannot assess corporate governance or leverage. There is no dividend yield, so I get no income while waiting. Civil construction is cyclical and competitive; pricing power is scarce. In the end, I am being asked to pay a small-cap cyclical near book value for mediocre returns and uncertain near-term earnings. Graham would demand margin of safety, and I believe the safety here is insufficient. I will watch it for evidence of a sustained earnings recovery, but I would not own it today.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer