CTL Share Price: A Complete Breakdown for Investors
If you are wondering how to open a demat account, you need to know how to analyse a stock price thoroughly and correlate it with the financial performance of a company. Let us take the example of CTL’s share price.
The stock price of CTL (Capital Trade Links) has provided decent returns in the last 12 months. Let us take a deeper dive into it.
Analysing CTL’s share price over the last 12 months
Over the last 12 months, between October 16, 2023, and October 15, 2024, CTL share price has delivered a return of 35.4%, which is higher than the 23.7% return provided by the benchmark BSE Sensex in the same duration.
But, if we dig deeper into it, we will find more revealing insights. For example, CTL’s stock was more volatile than the BSE Sensex.
Based on the prices of CTL and BSE Sensex’s values available on the Bombay Stock Exchange (BSE)’s website, we can calculate daily returns and the coefficient of variation of those returns.
Between October 16, 2023, and October 15, 2024, the average daily return of CTL and BSE Sensex were 0.2% and 0.1%, respectively.
In the same time duration, the standard deviation of their daily returns was 3.2% and 0.9%, respectively. If we divide their standard deviation by their average (mean), we can calculate their coefficient of variation.
Between October 16, 2023, and October 15, 2024, the coefficient of variation in the daily returns of CTL and BSE Sensex was 18.6 and 9.5, respectively.
In other words, CTL was nearly twice as volatile as BSE Sensex. Hence, if a trader had invested in CTL a year ago, he would have taken significantly more risk than if he had taken by investing in BSE Sensex.
In fact, there were a few instances when the price of CTL fell while BSE Sensex was mostly moving up. For example, between February 12, 2024, and June 6, 2024, CTL’s share price fell drastically by 28.4%, while BSE Sensex moved up marginally by 5.6%.
Then, between July 11, 2024, and September 30, 2024, CTL declined by 22.5%, while BSE Sensex moved up by 5.5%.
Hence, the data of last one year shows that CTL is a riskier investment than BSE Sensex.
That being said, we need to understand that past performance is not always a great predictor of the future performance of a stock price.
Now, let us look at CTL’s financial performance to see how the company has fared recently.
Examining CTL’s business performance in recent quarters
Capital Trade Links provides finance to individuals and organisations. It extends credit to a variety of borrowers, including individuals, open demat account, partnership firms, companies, proprietorships, etc. Besides, it provides credit for both commercial and personal reasons.
Based on the results available on its website, the company’s total revenue from operations grew by 51.6% in nine months ending June 30, 2024, on a year-on-year basis.
In the same time frame, its net profit grew by 274.7%. This shows that the company is growing at a high rate.
Perhaps, the growth in the company’s top line and bottom line is the reason why its stock price has surged by 35.4% in the last one year.
Conclusion
If we thoroughly analyse CTL’s share price, we will notice that it has outperformed BSE Sensex over the last 12 months. That said, it has also remained more volatile than the benchmark index.
The company’s financials show that it is growing at a healthy rate. That said, investors should use their discretion while investing in the stock.
Besides, as CTL is a financing company, they should analyse how economic factors, like interest rate, credit off-take, and inflation, will affect its performance before investing in the company.