CCL Products India Ltd. share price target

Distressed by a loss of a major customer (accounting for 2000 tons annual volumes), CCLP's revenues nerve-wrackingly tumbled last quarter (down 18.3%), resulting in some 24% drop in operating profit (yoy basis). OPMs slid to 20.6% from 22.2% in the same quarter a year ago, no smallish cut from peak margin of 26.2% in Q2, when optimum capacity utilization coupled with increased sales of small packs propelled margins. Despite attempts to reduce promotions in each of its domestic SKUs, plans are...

CCL Products (CCL) is one of the largest instant coffee manufacturers in the world. The company's key strength lies in its long-standing relationships with clients, expertise in coffee blends, cost efficiency and its pass-through mechanism to ensure margin protection. Over FY03-18, CCL has successfully scaled up its total capacity from 3,600 tonnes to 30,000 tonnes. Looking ahead, CCL remains well-poised to ramp up volumes from its recently set up 5,000 tpa freeze dried plant in Andhra Pradesh. We expect CCL's sales to grow at a CAGR of 17% over FY18-21E. We initiate coverage on the stock with a...

In Vietnam, Sales has declined by ~24% Y-O-Y in Q3FY19. We believe debt free status, better product mix and additional spray-dried capacity of 3500 ton by Q4FY20 would bring strong revenue and profitability growth in Vietnam. The management has guided 80% capacity utilisation for FY19 vs 60-70% in FY18. Incentives offered by Vietnamese government of zero tax rates will continue further....

CCL Products (India) Ltd. (CCL) declared its Q2FY19 results recently. Consolidated net revenues decreased by 1.9% to `291crs due to fall in green coffee prices. Consolidated EBITDA for Q2FY19 grew by 32.5% Y-O-Y basis to `76crs. EBITDA margin came in at...

CCL Products (India) Ltd. (CCL) declared its Q1FY19 results recently. Consolidated net revenues increased by 19% to `295 crs. Consolidated EBITDA for Q1 grew by 39% yoy basis to `64crs. Margins expanded by 310bps to 21.6% this quarter vs. 18.5% in Q1FY18....

CCL Products (India) Ltd. (CCL) declared its Q4FY18 results recently. Consolidated net revenues increased by 7% to `321crs. Consolidated EBITDA for Q4 grew by 11% yoy basis to `71crs. Margins were expanded by 70bps to 22.2% this quarter vs. Q4FY17. PAT grew by...

CCL Products (India) Ltd. (CCL) declared its Q3FY18 results recently. Consolidated net revenues decreased by 5.2% to `274 crs due to high base in Q3FY17. This was on account of plant shutdown in Q2, which resulted in higher execution of orders in Q3FY17. Hence the results were not comparable yoy basis. Consolidated EBITDA for Q3 grew by 12% Q-O-Q...

For Q3FY18, CCL products (CCL) posted subdued set of results on a strong base of Q3FY17. The management expects a strong fourth quarter to achieve the yearly revenue growth guidance of 10%. Revenues degrew by ~5% yoy and while the operating margins were also lower on yearly basis. Outlook and Valuation: We maintain our estimates in view o..

CCL Products Limited (CCL) is the largest Indian manufacturer and exporter of instant coffee. With a total capacity of 35,000 TPA (tonne per annum), the company has a global market share of ~6.5%. It also has a leading market share of 24% in Indian instant coffee exports CCL exports (contributing over 90% to revenue) to over 90 countries,..