CMI Ltd (CMICABLES) Q2 FY27 Financial Results: PAT ₹-16.38 & Revenue ₹1.2(2 announcements)

Investor Takeaways

Overall Tone: Cautious based on the numbers only.

Key Financial Highlights

What Changed

The company reported a substantial revenue increase to ₹1,200 crores in Q1 FY2027, up 69.9% year-on-year, accompanied by a net profit of ₹-16.38 crores, reflecting a 75.4% YoY increase in losses. Despite the revenue growth, the business remains unprofitable, with significant accumulated losses eroding net worth. The Board approved the unaudited results, but the auditor issued a disclaimer due to insufficient audit evidence, preventing an official audit opinion. This raises concerns about the reliability of the financials and the company’s ability to continue as a going concern, particularly given ongoing insolvency proceedings. The filing underscores a stark contrast between top-line growth and persistent bottom-line deficits, with minimal market capitalization and extremely low valuation multiples suggesting high investor skepticism or market distress.

Peer Comparison

CMI Ltd trades at a P/E ratio of 0.15, significantly lower than its peers, reflecting market skepticism. While its ROE and ROCE are relatively healthy at 10.88% and 16.55% respectively, these metrics are viewed in the context of severe profitability challenges and a disclaimed audit. The company’s market capitalization is ₹4.22 crores, a fraction of even the smallest peer, highlighting its diminished scale and investor confidence.

Risks & Concerns

Quarterly Trend

[This section is omitted because quarterly trend data provided includes only historical quarters (Q3FY19 to Q4FY18) and does not align with the current filing period (Q1 FY2027). The provided trend data is outdated and not relevant to the current results. Therefore, per instructions, this section is not included.]

Investor Takeaways

Overall Tone: Cautious

Key Financial Highlights

What Changed

The filing reveals a company in profound financial distress, with the board approving unaudited Q1 FY2025 results during ongoing insolvency proceedings. The auditor's limited review report explicitly flags material concerns regarding going concern status, net worth erosion, and lack of verification for key financial items. Despite the approval of results, the company's financial position remains severely weakened, as evidenced by negative net worth and a market capitalization of just ₹4.22 Cr. The P/E ratio of 0.15 and P/B ratio of 0.02 underscore the market's deep discounting of the company's book value, while the 38.02% dividend yield appears highly questionable given the current loss-making state. The company's historical quarterly performance from FY19 shows consistent profitability and healthy operating margins (OPM ranging from 9.18% to 12.31%), but this trend has not translated into sustained financial health in the current period. The limited review nature of the audit, coupled with the insolvency context, severely restricts the reliability of the financials presented.

Peer Comparison

CMI Ltd trades at a significant discount to peers on P/E and P/B metrics, but its profitability and efficiency ratios (ROE, ROCE) are materially lower than industry leaders like HAL, BEL, and SOLARINDS, which demonstrate strong returns and healthy financial positions.

Risks & Concerns

Quarterly Trend

About CMI Ltd (CMICABLES)

Capital Goods · Cables · Listed on BSE

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