Some essential information investors should know about Citizen Investment Trust; how has the company performed in the past?

Citizen Investment Trust

Sector: Others

Symbol: CIT

No. of Outstanding Shares: 11,023,520

Introduction

Citizen Investment Trust was registered under the Citizen Investment Trust Act, 2047 on 18th March, 1991. It started its formal operation from 15th January, 1992. The head office of CIT is at New Baneshwor, Kathmandu and branch offices are at Pokhara and Biratnagar. It is a government owned public financial organization, providing various kinds of schemes and programs for both domestic and foreign investors.

(Source: CIT website)

Financial Ration and Other Information

(Source: CIT Financial Report)

*Note: All the data plotted in the figures above for the last period 2018/19 include only 9 months data (up to Chaitra of 2075). EPS, P/E ratio and ROI are annualized.

Price Outlook of Citizen Investment Trust Since 2015 to July 15 of 2019.

Highest Trading Price: Rs.5,610 (on July, 05, 2016)

Lowest Trading Price: Rs. 1,577 (on Dec, 13, 2018)

Highest Closing Price: Rs. 5,440 (on July, 04, 2016)

Lowest Closing Price: Rs. 1,577 (on Dec, 13, 2018)

52-weeks High: Rs. 2,948

52-week Low: Rs. 1,577

Monthly Stock Outlook

Based on its stock performance since 2011, (CIT) Citizen Investment Trust has closed higher in 100 % of May months. In terms of price change, it has gained the most (9.45 % on average) in Dec month.

Measurement of Investment Risk- VAR

*VAR for 1 week: There is a 0.05 probability that the price of stock will fall its value by Rs.9.115 or more over any normal trading week.

Measurement of Systematic Risk- Beta

(Source: SS Pro)

*Monthly Beta: The stock is 11% more volatile than the market.

*Quarterly Beta: The stock is 40.9% less volatile than the market.

Provided various schemes with attractive interest rate, the company has become top traded company in terms of turnover during the fiscal year 2018/19 reaching its turnover to Rs. 1,477,904,187 in the sector ‘others’.  

Although company’s share price is not seen as justifiable with EPS, investors are ready to pay more for the company’s stock. Similarly, Graham number also indicates the stock of CIT as heavily overvalued. It may be because of limited number of shares (one fifth) made available to general public. Likewise, CIT has also facilitated its investors issuing attractive bonus shares along with cash dividend for tax purposes during the recent years. So, handsome bonus shares and fundamentals have attracted investors towards CIT’s stock.

The stock of CIT have shown seasonal effect on stock performance. It has been performing negatively during the month of July and August and providing good returns during the month of December compared to other months. However, it is not always appropriate to make buy and sell decisions based only on this trend.