BSE:506935

Stock Analysis Report

Continental Chemicals

Executive Summary

Continental Chemicals Limited provides software consultancy services in India and internationally.


Snowflake Analysis

Solid track record with adequate balance sheet.

Share Price & News

How has Continental Chemicals's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 506935's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

506935

-0.4%

IN IT

-0.07%

IN Market


1 Year Return

83.0%

506935

7.9%

IN IT

9.5%

IN Market

Return vs Industry: 506935 exceeded the Indian IT industry which returned 7.9% over the past year.

Return vs Market: 506935 exceeded the Indian Market which returned 9.5% over the past year.


Shareholder returns

506935IndustryMarket
7 Day0%-0.4%-0.07%
30 Day11.6%0.2%-1.3%
90 Day54.4%7.1%1.9%
1 Year83.0%83.0%10.8%7.9%11.5%9.5%
3 Yearn/a70.1%60.2%23.6%16.7%
5 Yearn/a55.9%41.6%35.5%22.9%

Price Volatility Vs. Market

How volatile is Continental Chemicals's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Continental Chemicals undervalued compared to its fair value and its price relative to the market?

6.56x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 506935 (₹18.25) is trading above our estimate of fair value (₹11.78)

Significantly Below Fair Value: 506935 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 506935 is good value based on its PE Ratio (6.6x) compared to the IT industry average (10.8x).

PE vs Market: 506935 is good value based on its PE Ratio (6.6x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 506935's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 506935 is good value based on its PB Ratio (0.9x) compared to the IN IT industry average (0.9x).


Next Steps

Future Growth

How is Continental Chemicals forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

9.3%

Forecasted Software industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Continental Chemicals has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Continental Chemicals performed over the past 5 years?

14.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 506935 has high quality earnings.

Growing Profit Margin: 506935's current net profit margins are higher than last year (25.1%).


Past Earnings Growth Analysis

Earnings Trend: 506935's earnings have grown by 14.4% per year over the past 5 years.

Accelerating Growth: 506935's earnings growth over the past year (367.9%) exceeds its 5-year average (14.4% per year).

Earnings vs Industry: 506935 earnings growth over the past year (367.9%) exceeded the IT industry 7.2%.


Return on Equity

High ROE: 506935's Return on Equity (17.9%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Continental Chemicals's financial position?


Financial Position Analysis

Short Term Liabilities: 506935's short term assets (₹2.9M) do not cover its short term liabilities (₹8.3M).

Long Term Liabilities: 506935's short term assets (₹2.9M) do not cover its long term liabilities (₹3.7M).


Debt to Equity History and Analysis

Debt Level: 506935's debt to equity ratio (14.9%) is considered satisfactory.

Reducing Debt: 506935's debt to equity ratio has reduced from 28.5% to 14.9% over the past 5 years.

Debt Coverage: 506935's debt is well covered by operating cash flow (85%).

Interest Coverage: 506935's interest payments on its debt are well covered by EBIT (14.2x coverage).


Balance Sheet

Inventory Level: 506935 has a high level of physical assets or inventory.

Debt Coverage by Assets: 506935's debt is not covered by short term assets (assets are 1x debt).


Next Steps

Dividend

What is Continental Chemicals's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 506935's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 506935's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 506935's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 506935's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 506935's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.7yrs

Average board tenure


CEO

Naresh Chibba (61yo)

₹1,240,548

Compensation

Mr. Naresh Kumar Chibba serves as the Managing Director of Continental Chemicals Limited. Mr. Chibba served as the Chairman of the Board at Continental Chemicals Limited. since April 2011. He serves as a  ...


CEO Compensation Analysis

Compensation vs Market: Naresh's total compensation ($USD17.27K) is below average for companies of similar size in the Indian market ($USD50.06K).

Compensation vs Earnings: Naresh's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Naresh Chibba
MD & Director0yrs₹1.24m5.92% 2.4m
Pradeep Chopra
Chairman0yrsno datano data
Sunaina Chibba
Non Executive Director5.4yrsno datano data
Akshat Bhaskar
Independent Director5.9yrsno datano data
Dhiraj Choudhary
Non-Executive Director4.6yrsno datano data

5.7yrs

Average Tenure

39yo

Average Age

Experienced Board: 506935's board of directors are considered experienced (5.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 21.4%.


Top Shareholders

Company Information

Continental Chemicals Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Continental Chemicals Limited
  • Ticker: 506935
  • Exchange: BSE
  • Founded: 1984
  • Industry: IT Consulting and Other Services
  • Sector: Software
  • Market Cap: ₹41.044m
  • Shares outstanding: 2.25m
  • Website: https://www.continentalchemicalsltd.com

Number of Employees


Location

  • Continental Chemicals Limited
  • A-7, Sector-7
  • Gautam Budh Nagar
  • Noida
  • Uttar Pradesh
  • 201301
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
506935BSE (Mumbai Stock Exchange)YesEquity SharesININRJan 2016

Biography

Continental Chemicals Limited provides software consultancy services in India and internationally. The company offers event Websites with complete CMS; awards Websites with dynamic judging and call for papers; conference management systems; online manuals; mobile apps and mobile Websites; and interactive floor plans and events route planners. The company is also involved in the purchase, sale, and licensing of software, as well as in the provision of hosting, consultancy, sales, and training services. Continental Chemicals Limited was founded in 1984 and is headquartered in Noida, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 12:50
End of Day Share Price2020/01/31 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.