We maintain BUY retaining our TP of Rs 325, continuing to value the stock at 18x its FY22E P/E multiple.

CCL Products (CCLP) is the largest manufacturer and exporter of private label Instant coffee in India with a total manufacturing capacity of 35k tonnes. CCLP's 25 years experience in the industry and expertise in customized coffee blends

We present 1QFY21 preview of our mid-cap coverage universe. The maximum impact of the nation-wide lockdown will be felt in 1QFY21. As majority of the factories were shut for the entire month of Apr'20, followed by sub-optimal capacity utilization in May'20 (also Jun'20 in select cases), we expect significant revenue decline (in the range of 15%-75%) for companies in our coverage universe. Limited revenue decline expectation in CCL Products (CCLP) is on account of smooth functioning of Vietnam operations and 4QFY20 unsold inventory in India, which will be booked during the quarter. On the profitability side, we believe that despite various cost rationalization measures, including pay cuts, Mold-Tek Packaging (MTEP) and...

We recently did a 2-day road show with the management of CCL Products (CCLP). Key questions from investors were pertaining to the impact of Covid 19 on demand, expansion plans and margin outlook going forward. Management indicated that with higher focus on direct sales to brand owners, addition of packing & agglomeration capacity, higher utilization from Freeze Dried Unit (FD) and ongoing improvement of process parameters, CCLP can deliver profitable growth in the next 3-4 years. Growth can further accelerate after the capacity expansion (~15,000 tonnes) in 2HFY23/FY24. Demand trends are stable despite Covid-19: Management highlighted that overall coffee...

Despite a flat revenue growth at Rs 265Crs YoY (lower than our estimate Rs 283 Crs) in Q4FY20, CCL Products (CCLP) posted a robust GM expansion at 58.8% (1343 bps expansion YoY)on back of higher share of freeze dried coffee (FDC).

We are re-initiating coverage on CCL Products (CCLP), which is India's largest manufacturer and exporter of instant coffee. The company has in total 35,000 tonnes capacity located in India and Vietnam and is the largest B2B processing player in the world. Superior execution capabilities coupled with strong client relationships has enabled the company to deliver profitable growth over the years. Scale is very important in this business and we highlight that smaller peers (both in India and outside) have struggled in terms of both revenue and profitability. CCLP is the largest Indian exporter of instant coffee (~37% share) and has ~20% share in Vietnam...

We recommend a BUY on CCL PRODUCTS with a Target Price of Rs 225 an upside of 7% from CMP of Rs. 209 and Stop Loss Rs 201.

According to our recent interaction with CCLP management, although the business has not seen any production halts or order cancelations until first half of March,2020, delayed dispatches to its exporting countries (~90% of revenue) could limit its topline growth in Q4FY20.

CCL Products (CCLP) posted a robust consol. revenue growth at Rs 303Crs up 29% YoY primarily aided by healthy India operations. Operating EBITDA increased by 55% YoY to Rs. 84Crs along with margin expansion of 460bps to 27.8% in Q3FY20.

CCL Products produces several varieties and blends of coffee including spray dried coffee powder, spray dried agglomerated / granulated coffee, freeze dried coffee and freeze concentrated liquid coffee. It is also certified to supply organic coffee, rainforest alliance coffee, UTZ certified coffee and...

CCL Products (India) Ltd. (CCL) declared its Q3FY20 results recently. Consolidated net revenues and EBITDA grew by 29% & 55% Y-O-Y, on account of benign input cost, better product mix and higher utilisation. The EBITDA margin of the company improved by 460bps to...

CCL Products delivered healthy growth in revenue in 3QFY20 on the back of increased output from the SEZ unit after commencing operations in the first quarter. The SEZ unit is dedicated for the manufacture of freeze dried coffee which enjoys higher margins compared to spray dried coffee, resulting in mix improvement. The company reported EBITDA of Rs842mn, registering a growth of 55% YoY. This was largely on account of a low base last year and increased sales from the SEZ plant this year. The operating margin expansion witnessed this quarter was very encouraging. Operating margin expanded by 460bps because of healthy growth in topline as well as mix improvement from freeze dried coffee. The management has maintained its volume...

The company has a total processing capacity of 35,000 MT per annum, having one of the largest capacity in India (20,000 MT) and Vietnam (10,000 MT). CCL Products' soluble instant coffee manufacturing plant is located in Duggirala Mandal, Guntur District, Andhra Pradesh, India (capacity of 20,000 MT per annum). CCL has set up a freeze dried instant coffee (a premium category of coffee) greenfield plant with capacity of 5,000 tonnes in Chittoor,...

We remain positive on CCL Product's strong business moat, market leadership in Instant Coffee production/exports and foray into branded retail business.

CCL Products (India) Ltd. (CCL) declared its Q2FY20 results recently. Consolidated net revenues grew by 3% Y-O-Y to `299 crs, impacted by lower realisation. Consolidated EBITDA for Q2FY20 decreased by 19% Y-O-Y basis to `62crs due to higher ad spend. Gross...

CCL Products India Ltd (CCLP) established in 1995, is the largest manufacturer and exporter of instant coffee (IC) in India. CCL Products is the largest exporter in B2B segment: Private Label (B2B) segment of the global instant coffee market is growing at a higher rate.

Raw material cost decreased by 19% Y-O-Y. Employee expenses and other expenses increased by 19%&8.5% Y-O-Y respectively. Depreciation increased by 17% Y-O-Y to `11 crs as SEZ came in operations from April 2019.EBIDTA margin for Indian...

CCL Products Q1FY20 revenue was in line with our forecast while EBITDA was 17.8% above our estimate. The company's EBITDA grew 9.0% YoY to Rs694 mn due to 377bps improvement in EBITDA margin to 25.4%. Despite 9.0% YoY growth in EBITDA, net profit decreased 12.1% YoY to Rs347 mn mainly due to higher tax rate at 36% in Q1FY20 vs. 24% in Q1FY19. Newly set up freeze dried plant sales stood at ~350 kt while Vietnam...