CCL - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.3
| Stock Code | CCL | Market Cap | 15,157 Cr. | Current Price | 1,135 ₹ | High / Low | 1,197 ₹ |
| Stock P/E | 72.2 | Book Value | 94.7 ₹ | Dividend Yield | 0.44 % | ROCE | 10.1 % |
| ROE | 8.02 % | Face Value | 2.00 ₹ | DMA 50 | 1,066 ₹ | DMA 200 | 958 ₹ |
| Chg in FII Hold | 0.23 % | Chg in DII Hold | -0.10 % | PAT Qtr | 36.2 Cr. | PAT Prev Qtr | 112 Cr. |
| RSI | 59.8 | MACD | 16.8 | Volume | 2,39,639 | Avg Vol 1Wk | 2,38,575 |
| Low price | 582 ₹ | High price | 1,197 ₹ | PEG Ratio | -7.12 | Debt to equity | 0.69 |
| 52w Index | 89.9 % | Qtr Profit Var | 286 % | EPS | 15.7 ₹ | Industry PE | 21.8 |
📊 CCL Products (CCL) shows weak fundamentals despite strong price momentum. ROCE at 10.1% and ROE at 8.02% reflect poor efficiency, while debt-to-equity at 0.69 highlights moderate leverage risk. EPS of 15.7 ₹ supports profitability, but quarterly PAT dropped sharply (112 Cr. → 36.2 Cr.), showing earnings volatility. Valuations are stretched with a P/E of 72.2 vs industry average of 21.8, and PEG ratio of -7.12 indicates misalignment with growth. Dividend yield of 0.44% is modest. Overall, while CCL benefits from its global coffee export business model, valuation and earnings risks limit long-term attractiveness.
💡 Entry Zone: 1,050–1,080 ₹ (near 50 DMA support).
📈 Long-Term Holding Guidance: Suitable only for cautious investors. Accumulate gradually near support zones and hold for 12–18 months, with partial profit booking near 1,150–1,170 ₹ if momentum sustains.
✅ Positive
- Global coffee export business model provides diversification.
- EPS of 15.7 ₹ supports earnings visibility.
- FII holdings increased slightly (+0.23%), showing foreign investor interest.
- MACD (16.8) and RSI (59.8) indicate bullish momentum.
⚠️ Limitation
- High P/E (72.2) vs industry average (21.8).
- Negative PEG ratio (-7.12) highlights poor growth valuation balance.
- Weak ROCE (10.1%) and ROE (8.02%).
- Dividend yield of 0.44% is modest.
📉 Company Negative News
- Quarterly PAT dropped sharply (112 Cr. → 36.2 Cr.).
- DII holdings declined (-0.10%), showing reduced domestic institutional support.
📈 Company Positive News
- FII holdings increased (+0.23%), reflecting foreign investor confidence.
- Quarterly profit variation (+286% YoY) shows long-term growth resilience despite sequential decline.
🏭 Industry
- Food & beverage sector remains resilient with global demand for coffee products.
- Industry P/E at 21.8 highlights moderate valuations compared to CCL’s premium.
🔎 Conclusion
⚖️ CCL Products is a fundamentally weak company with stretched valuations and poor efficiency metrics, despite strong global presence. Entry near 1,050–1,080 ₹ offers a cautious accumulation zone. Best suited for short- to medium-term investors willing to book profits near 1,150–1,170 ₹. Long-term accumulation is risky unless ROE/ROCE improve and earnings stabilize.