CCL - Fundamental Analysis: Financial Health & Valuation

📈 Positive

• ROCE of 10.1% and ROE of 8.02% — modest but stable return metrics.
• Quarterly PAT growth of 24.7% — consistent earnings momentum.
• EPS of ₹7.38 — supports valuation and profitability.
• DII holding increased by 0.64% — signals domestic institutional confidence.
• Trading above DMA 200 — confirms long-term trend support.
• Dividend yield of 0.58% — modest income for long-term holders.

⚠️ Limitation

• P/E ratio of 117 vs industry average of 23.5 — significantly overvalued.
• PEG ratio of -11.5 — valuation not supported by earnings growth.
• Book Value of ₹89.0 vs current price of ₹863 — high P/B ratio.
• Debt-to-equity ratio of 0.72 — moderate leverage, worth monitoring.
• MACD negative at -5.56 and RSI at 49.9 — neutral to weak technical indicators.
• FII holding declined by 0.12% — reflects mild foreign investor caution.

📉 Company Negative News

• Stock corrected ~10.9% from its 52-week high of ₹969.
• MACD and volume trends suggest short-term weakness.

📢 Company Positive News

• Q2 PAT rose to ₹31.4 Cr from ₹30.2 Cr — steady sequential growth.
• Strong export demand and product diversification supporting revenue stability.
• Stock up 78.5% over the past year — reflects investor confidence.

🏭 Industry

• Processed food and beverage sector benefits from rising global consumption and premiumization trends.
• Industry P/E of 23.5 — CCL trades at a significant premium.
• Sector faces input cost volatility and export dependency risks.

🧾 Conclusion

• Business Model: Leading manufacturer of instant coffee with strong export presence and diversified product portfolio.
• Competitive Advantage: Global footprint, backward integration, and long-term client relationships.
• Entry Zone: ₹820–₹850 — near DMA 50 and technical support.
• Long-Term Holding: Suitable for moderate-risk investors with a 3–5 year horizon and interest in FMCG exports.