Sunday, September 25, 2011

Cals Refineries - Analysis and Research Report

Cals Refineries Background & Fundamental Analysis
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The company is into integrated refineries and petrochemical business. The company (CALS - Computer Aided Learning Systems) was initially established to develop bilingual computer systems and it came out with an IPO in 1994. In 2007 the company got acquired by Spice Energy Group. The company has plans to set up a total of 20 MMTPA of oil refining capacity in Haldia, West Bengal, in phases, thereby emerging as the third largest oil Refining and petrochemical company in the Indian private sector.

Five year financial snapshot:  



Stock Price, Volume and Listing info:

Current Market Price (25th sep 2011) : Rs. 0.35
52 Week High Low : 0.63 / 0.25
Market Capitalization: Rs. 290.29 crores
Face Value: Rs. 1
Average Daily Volume: 2 crore shares (approx.)
Listed only in BSE (Bombay Stock Exchange)


Valuation Analysis:

Price Earning Ratio (PE)  = 0 (The company had net loss in FY-2011)
Dividend Yield = 0 (The company didn't paid any dividend)
Price to Book value Ratio (PBV) = 0.35


Technical Analysis:


Conclusion: Due to very low ticker price lot of traders and investors buy this stock in quantity hoping to cash on even on slight upmove. Though the stock look cheap on ticker (0.35), actually its very expensive from all valuation parameters. The market cap of approx. 300 crores doesn't justify the current financials of the company. Though the company is working on very ambitious project worth $1.8 billion, it would be tough for the company to show profits in next 3 years. Hence Investors or traders should avoid this stock.

3 comments:

  1. Excellent Analysis! Agree with your view on Cals. The company is having ambitious plans, but will take lot of resource and time to materialize. Till then there are lot of stocks which are attractive and can be invested...

    ReplyDelete
  2. any new update in this share

    ReplyDelete
  3. What's the current status of a company ?

    ReplyDelete

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