⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
CGCL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.9
| Stock Code | CGCL | Market Cap | 16,252 Cr. | Current Price | 169 ₹ | High / Low | 232 ₹ |
| Stock P/E | 21.9 | Book Value | 65.3 ₹ | Dividend Yield | 0.12 % | ROCE | 11.4 % |
| ROE | 11.0 % | Face Value | 1.00 ₹ | DMA 50 | 172 ₹ | DMA 200 | 180 ₹ |
| Chg in FII Hold | -0.33 % | Chg in DII Hold | -0.18 % | PAT Qtr | 221 Cr. | PAT Prev Qtr | 212 Cr. |
| RSI | 52.2 | MACD | -0.94 | Volume | 4,13,635 | Avg Vol 1Wk | 24,61,764 |
| Low price | 151 ₹ | High price | 232 ₹ | PEG Ratio | 0.60 | Debt to equity | 1.99 |
| 52w Index | 22.8 % | Qtr Profit Var | 104 % | EPS | 7.97 ₹ | Industry PE | 17.2 |
📊 Financial Overview
- Revenue & Profitability: Quarterly PAT improved from 212 Cr. to 221 Cr., showing steady growth. EPS at 7.97 ₹ is modest compared to peers.
- Margins & Returns: ROE at 11.0% and ROCE at 11.4% are moderate, reflecting average efficiency and shareholder returns.
- Debt Profile: Debt-to-equity ratio of 1.99 indicates moderate leverage, manageable but worth monitoring.
- Cash Flow: Profit growth supports cash generation, though scale and efficiency improvements are needed.
💹 Valuation Indicators
- P/E Ratio: 21.9 vs Industry PE of 17.2 → slightly overvalued relative to peers.
- P/B Ratio: Current Price 169 ₹ vs Book Value 65.3 ₹ → P/B ~2.59, somewhat expensive.
- PEG Ratio: 0.60 → indicates fair valuation given growth prospects.
- Intrinsic Value: Trading above intrinsic value, suggesting limited near-term upside.
🏢 Business Model & Competitive Advantage
- CGCL operates in financial services, focusing on lending and credit solutions.
- Moderate leverage and consistent profitability provide stability.
- Competitive advantage lies in niche lending focus, though efficiency metrics are average.
📈 Technical & Entry Zone
- Stock trading at 169 ₹, near 50 DMA (172 ₹) and below 200 DMA (180 ₹).
- RSI at 52.2 indicates neutral momentum; MACD slightly negative suggests mild short-term weakness.
- Entry Zone: Attractive between 160–165 ₹ for accumulation, with cautious long-term holding.
✅ Positive
- Consistent profit growth with quarterly PAT improvement.
- PEG ratio of 0.60 indicates fair valuation relative to growth.
- Moderate leverage compared to peers in financial services.
⚠️ Limitation
- ROE and ROCE are modest, reflecting average efficiency.
- P/E and P/B ratios suggest overvaluation compared to industry benchmarks.
📉 Company Negative News
- No major recent negative news, but slight reduction in FII (-0.33%) and DII (-0.18%) holdings indicates cautious sentiment.
📈 Company Positive News
- Quarterly profit growth of 104% highlights strong operational performance.
- Stable financial structure with manageable debt-to-equity ratio.
🏭 Industry
- Financial services sector benefits from credit demand and economic expansion.
- Industry PE at 17.2 indicates moderate valuations.
- Competition from larger NBFCs and banks remains a challenge.
🔮 Conclusion
- CGCL shows steady fundamentals with moderate profitability and manageable leverage.
- Valuation appears slightly stretched, limiting near-term upside.
- Recommendation: Accumulate in the 160–165 ₹ range for cautious long-term holding, focusing on gradual growth in financial services demand.