CCL Products
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
CCL Products (India) Limited is positioned for sustained growth, driven by management's confidence in achieving a 15% volume increase for FY27, particularly in its domestic branded business. The company's strategic focus on expanding its B2C segment internationally, including the launch of the Percol brand in the U.S. and Middle East, is expected to enhance revenue streams. However, challenges such as volatile green coffee prices and rising logistics costs could impact margins. Despite these headwinds, CCL's cost-plus pricing model provides a buffer against input cost fluctuations, supporting stable margins. Vista's financial outlook reflects a fair valuation with an expected upside of approximately 23.8%, underpinned by a stable balance sheet and a commitment to operational efficiency. The FMCG sector's overall growth trajectory, characterized by volume expansion and strategic price adjustments, further supports CCL's outlook. Over the next 12-24 months, key opportunities include the successful rollout of new product categories and geographic expansion, while watchpoints include potential margin pressures from input costs and the need for capacity management to meet demand
Why We Like This Stock
- Management's guidance of 15% volume growth for FY27 indicates strong demand and operational confidence
- Strategic international expansion of the B2C segment could significantly enhance revenue and market presence
- Stable margins supported by a cost-plus pricing model provide resilience against input cost fluctuations
Things To Watch Out For
- Volatility in green coffee prices poses a risk to supply chain stability and could impact margins
- Rising logistics and packaging costs may exert additional pressure on profitability, particularly in smaller pack segments
- Limited capacity expansion plans could restrict growth if demand exceeds current production capabilities
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 2,654 | 3,106 | 4,457 | 4,304 | 5,059 |
| Profit Before Tax (Cr.) | 276 | 352 | 461 | 491 | 575 |
| PBT Margin | 10.4% | 11.3% | 1034.3% | 11.4% | 11.4% |
| Net Profit (Cr.) | 253 | 323 | 396 | 421 | 493 |
| Earnings Per Share | 19.0 | 24.2 | 29.6 | 31.5 | 36.9 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Axis Securities | ▲ Buy | 1,185 | 11-Jun-2026 |
| BPWealth | ▲ Buy | nan | 11-May-2026 |
| Choice Equity | ▲ Buy | 1,365 | 11-May-2026 |
| Geojit Financials | ▲ Buy | 1,350 | 01-Apr-2026 |
| IDBI Capital | ► Hold | 1,142 | 29-Jul-2026 |
Company Overview
Show Company Profile
CCL Products (India) Limited manufactures and sells instant coffee and coffee related products in India. The company offers filter, premix, instant, and flavored coffee, including spray dried coffee powder and agglomerated coffee, freeze dried coffee, freeze concentrated liquid coffee, roast and ground coffee, and roasted coffee beans under the Continental brand. It also exports its products. CCL Products (India) Limited was incorporated in 1961 and is based in Hyderabad, India.