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Last Updated : Dec 18, 2014 04:57 PM IST | Source: CNBC-TV18

Did You Know: CCL: M-cap over Rs 4000 cr; profit under Rs 10 cr in 5 yrs

The company has an orderbook pipeline of nearly USD 45 million which could reach as high as USD 100 billion going ahead.


Did you know about a commodity, trading and construction company with a market cap of over Rs 4000 crore but has made profit of less than Rs 10 crore in the last 5 years?


The company is question is CCL International Limited. CNBC-TV18’s Varinder Bansal gives us the details.


As mentioned earlier, the market capitalization of the company is above Rs 4,000 crore. Those interested to learn more about it can visit its website -- www.creteroads.com.

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The stock price has surged around 1,200 percent since April 2013. There was also a fresh creation of stock in 2011, wherein the face value came from Rs 10 to Rs 2.


CCL International was established in 1995 by Gupta family as Chirawa Cement. They have now diversified into various businesses, which include Chirawa Commodities, Core Concrete Products, Concrete Ceramics and Creteroads Constructions and many more.


Going through the financials, one can see that despite having a market cap of above Rs 4,000 crore, the company hasn’t reported good numbers in the last five years or so.


Even if the profits of the past five years are clubbed, it would be less than Rs 10 crore, which the company has reported. The earnings per share (EPS) is 50 paise or so and the price earning ratio is over 1000 times of which the stock price is correctly trading.


Even the sales of the last five years have been in the range of Rs 50-85 crore. Thus, nothing substantial in terms of numbers to actually command that kind of market cap.


The company has an orderbook pipeline of nearly USD 45 million which could reach as high as USD 100 billion going ahead.


What led to this 1,200 percent surge in the stock?


A reverse merger happened in March 2012, where the company actually amalgamated with a group company -- AAR Infrastructure. The company received an approval of this merger in July 30, 2011. The total number of shares changed dramatically during that period – from nearly 67 lakh shares to as high as 9.5 crore. Even the promoter holding jumped from13.88 percent to 29.4 percent and the stock started moving.


During the reverse merger the stock, which was trading at around Rs 30, shot up to the levels of Rs 400-410. However, even after that, for the past two years there has been no fundamental improvement in terms of financials in the company.

Profits remain at Rs 1-2 crore for the full year and nothing much has changed. Even the shareholding pattern has remained stagnant post reverse merger, with promoter holding at 29.4 percent and there has been some rotation happening in the number of total number of shareholder coming in.



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First Published on Aug 6, 2014 11:40 am
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