CCL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.3
| Stock Code | CCL | Market Cap | 13,004 Cr. | Current Price | 972 ₹ | High / Low | 1,074 ₹ |
| Stock P/E | 71.0 | Book Value | 94.7 ₹ | Dividend Yield | 0.51 % | ROCE | 10.1 % |
| ROE | 8.02 % | Face Value | 2.00 ₹ | DMA 50 | 951 ₹ | DMA 200 | 877 ₹ |
| Chg in FII Hold | 0.49 % | Chg in DII Hold | -0.30 % | PAT Qtr | 112 Cr. | PAT Prev Qtr | 31.4 Cr. |
| RSI | 55.0 | MACD | -0.77 | Volume | 90,234 | Avg Vol 1Wk | 1,45,720 |
| Low price | 475 ₹ | High price | 1,074 ₹ | PEG Ratio | -7.00 | Debt to equity | 0.69 |
| 52w Index | 82.9 % | Qtr Profit Var | 306 % | EPS | 13.7 ₹ | Industry PE | 13.6 |
💹 Financials: CCL Products shows modest efficiency with ROE at 8.02% and ROCE at 10.1%, reflecting average capital productivity. Debt-to-equity at 0.69 indicates moderate leverage, which adds financial risk. Quarterly PAT surged from 31.4 Cr. to 112 Cr., showing a strong 306% growth, highlighting earnings momentum. EPS at 13.7 ₹ supports moderate earnings visibility.
📊 Valuation: The stock trades at a P/E of 71.0, far above the industry average of 13.6, suggesting extreme overvaluation. The P/B ratio is ~10.3 (972/94.7), which is steep. PEG ratio of -7.00 indicates distorted valuation metrics due to inconsistent growth. Dividend yield at 0.51% is modest, offering limited income return.
🏢 Business Model & Advantage: CCL Products operates in the coffee manufacturing and export sector, specializing in instant coffee. Its competitive advantage lies in global presence, strong export markets, and long-standing client relationships. Demand is supported by rising global coffee consumption and premiumization trends.
📈 Overall Health: Financially stable with strong earnings growth momentum, but valuations are stretched and return ratios remain modest. RSI at 55.0 suggests neutral momentum, while MACD at -0.77 indicates mild bearish sentiment in the short term. Long-term fundamentals remain intact, supported by global coffee demand, though valuation risks persist.
🎯 Entry Zone: Attractive entry closer to 900–940 ₹ range, near DMA 200 support levels. Current price of 972 ₹ is expensive relative to industry peers. Long-term investors should be cautious, accumulating only at lower levels given stretched multiples.
Positive
- Quarterly PAT growth of 306% highlights strong earnings momentum.
- Moderate debt-to-equity ratio (0.69) ensures manageable leverage.
- Strong global presence in coffee exports.
- FII holdings increased by 0.49%, reflecting foreign investor confidence.
Limitation
- High P/E (71.0) compared to industry average (13.6).
- High P/B ratio (~10.3) suggests stretched valuation.
- PEG ratio of -7.00 highlights distorted valuation metrics.
- Dividend yield at 0.51% offers limited income return.
- ROE (8.02%) and ROCE (10.1%) remain modest.
Company Negative News
- DII holdings decreased by -0.30%, showing reduced domestic institutional support.
- Valuations remain significantly above industry averages.
Company Positive News
- Quarterly PAT surged from 31.4 Cr. to 112 Cr.
- FII holdings increased by 0.49%, reflecting foreign investor confidence.
- Strong export demand supports long-term growth prospects.
Industry
- Coffee manufacturing and export industry benefits from rising global consumption.
- Industry P/E at 13.6 indicates CCL trades at a steep premium compared to peers.
Conclusion
CCL Products remains a fundamentally stable company with strong export demand and recent earnings momentum. However, high valuations and modest return ratios limit upside potential. Entry around 900–940 ₹ is advisable for long-term investors, with cautious accumulation recommended given stretched multiples.