CCL Products India Ltd. share price target

Recommendation With a 23% upside from the CMP and the stock providing reasonable valuation and upside potential, we maintain our BUY rating on the stock.

We maintain a BUY on the stock (Unchanged from the earlier stance). We increased our FY23/24E PAT estimates by 11%/4% to factor in lower tax guidance.

We expect CCLP's Sales/EBITDA/PAT to grow at 31%/27%/26% CAGR over FY22-25E and maintaina high conviction BUY rating on the stock with a unchanged TP of Rs 600/share as we roll over our estimates to 23x Sept-24 EPS.

CCL Products is one of our high conviction BUY with a revised TP of Rs 560/share (Rs 585/share earlier), as we continue to value it at a target P/E multiple of 23x its FY24E EPS.

We recommend BUY with TP of Rs. 430/share.

We raise our FY22/FY23 sales forecast given rise in coffee prices in recent months but maintain our profitability (on per kg basis) estimates. We introduce FY24 forecast in this report. We now value the stock at a PER of 18x FY24E (earlier 22x FY24E) EPS and derive a target price of Rs459 (previous Rs446) and upgrade the stock to a BUY. Key Highlights and Investment Rationale Robust top-line growth: Net sales grew by 4.5% YoY to Rs3.4 bn in Q2FY22 mainly led by higher coffee prices. CCL's EBITDA margin improved 38bps YoY at 24.4% despite sharp rise in freight rates. The freight rates continue to remain high which could pose...