CCL Products India Ltd. share price target

CCL Products (India) Ltd. (CCL) declared its Q4FY17& FY17 results recently. Consolidated Net Revenues grew by 12.3% to `297crs. in Q4. Consolidated EBITDA for Q4 grew by 5% Y-OY basis to `64 crs. Margins contracted by150 bps to 21.5% vs. 23% this quarter. For FY17, consolidated net revenues grew by 4.5% to `963.5 crs. EBIDTA for FY17 grew by 14% to...

ICICI Securities Ltd | Retail Equity Research CCL Products, India's largest exporter of bulk instant coffee, is set to grow at revenue and earnings CAGR of 12.6% and 16.7% in FY16-19E, respectively, largely driven by its capacity expansion and increasing utilisation levels. At present, CCL has a combined capacity of 30000 tonnes per annum (TPA) from its facilities across India, Vietnam and Switzerland. In addition to the capacity expansion, the strong relationship with clients and focus on strengthening the presence of own brand,...

CCL is setting-up a greenfield 5,000 MT freeze dried coffee plant in Chittur district of Andhra Pradesh which will commence production by mid-CY18.The benefits of this expansion will be visible from FY19 onwards. Thus, we estimate volumes at standalone operations to post a CAGR of ~11% over FY17-19E. Moreover, with the ramp up of Vietnam plant, capacity utilisation has shown remarkable improvement since FY15. We expect volumes at Vietnam operations to grow at a CAGR of ~26% over FY17-19E. Hence, we project CCL's overall sales volume to grow at a CAGR of 15.5%...

Growth from Vietnam Unit and Domestic Business Compensated the Growth During Shutdown Period: CCL Products in Q3FY17 reported a stupendous performance with YoY growth of 34.6% in topline and 76.4% in bottomline along with improvement in EBITDAmargins of 551 bps. Growth in business from Vietnam plant and improvement in sales from domestic markets both in the institution and branded segments led to growth in sales and net profit margins of the company. Along with this, growth incapacity utilizations, improvement in per tone realizations also witnessed because of the reason mentioned above.

CCL reported a strong Q3 performance, registering a topline growth of ~30.9% yoy with reported sales at `277.9crs. vs. `212.3crs. in the corresponding quarter, last year. For 9 months, it has registered a growth of 1.4%. Topline growth was aided by a 25-30% jump in productivity at the freeze-dried plant. EBIDTA grew by 69% yoy to `77.2crs leading to a margin expansion of550 bps. Margins in Q3 were at 26.9% vs. 21.4%. Employee cost increased by 75% yoy to `14 crs. This was on account of higher incentive payout. Other expenses also increased by 36% to `22 crs due to increase in CSR activities. PAT grew by 76.4%...

CCL Products (India) Ltd. (CCL) declared its Q2FY17 results recently. Results were adversely impacted on account of an extended plant shutdown. Topline de-grew by 40.6% to `138.2 crs. on account of freeze-dried plant refurbishment. The plant was shut for ~80 days this quarter. Consolidated EBITDA de-grew on a Y-O-Y basis by 41.0% to `28.6crs, with margins...

similar capacity in December last year. The investment is expected to be financed both through internal accruals & debt to the tune of USD15mn and USD25mn respectively. Land has already been purchased for this unit for `23crs. In the United States, three of the five clauses of the FSMA Act have already been implemented. The fourth, which deals with adulteration in food items and which involves not just coffee but various other products, is in the process of getting passed. The USA coffee market is dominated by Brazilian companies currently, who do not emphasize on product purity. However post the enactment of the Act in its entirety, the...

Operational efficiencies, improved product mix and lower green coffee prices aided profitability growth. Operating erating Profit Margins expanded 150 bps in FY16 to 20.6%. Net sales showed a growth of 5.3% Y-O-Y Y and 12.2% Q-O-Q to `179.9crs. in...

CCL Products is India's largest exporter of bulk instant coffee with a combined capacity of 35000 tons per annum (TPA) from its facilities across India, Vietnam and Switzerland. The company had commissioned...

EBIDTA grew just by 0.1% Y-O-Y but de-grew grew by 7.0% Q-O-Q to `32.8crs. in Q3FY16. Correspondingly EBITDA for the 9 months was `101.0crs. showing a growth of...