CIC HOLDINGS (CIC.N/ X)

A solid company with a lot of uncertainties

CIC is an interesting company to watch. While it’s currently trading at an attractive discount (TTM PE of 4.8 and 5.7 for its non-voting and voting shares respectively as per last quarter earnings), too many uncertainties remain on its future and sustainability of earnings. Most significant being the Government’s blanket ban on chemical fertiliser which directly impacts its Crop Solutions segment (34% of revenue; 42% of net profit), and has a cascading effect on its Agri Produce segment (9% revenues; segment is loss…