CCL - Investment Analysis

Last Updated Time : 02 Aug 25, 12:58 am

📊 Investment Rating: 4.1

CCL Products (India) Ltd. shows promising fundamentals for long-term investors, especially those seeking exposure to the packaged foods and coffee export segment. Here's a detailed breakdown

✅ Strengths for Long-Term Investment

Profitability & Growth

ROE: 17.0% — solid shareholder returns

ROCE: 13.1% — decent capital efficiency

EPS: ₹23.2 — strong earnings base

PAT growth: ₹102 Cr vs ₹63 Cr — impressive 56.2% quarterly jump

Momentum & Trend

52-week Index: +86.9% — strong price appreciation

Trading above 50 DMA (₹830) and 200 DMA (₹729) — bullish trend

Institutional Interest

FII and DII holdings increased — positive sentiment

⚠️ Risks & Valuation Concerns

High Valuation

P/E: 37.0 vs Industry PE of 15.5 — premium pricing

PEG Ratio: 2.48 — suggests overvaluation relative to growth

Debt Load

Debt-to-equity: 0.92 — moderately high, needs monitoring

Dividend Yield

0.58% — not attractive for income-focused investors

📈 Ideal Entry Price Zone

To reduce valuation risk, consider accumulating in the ₹780–₹820 range

This zone is near the 50 DMA and offers a better margin of safety

RSI at 50.5 and MACD positive — neutral momentum, wait for dips or breakout confirmation

🧭 Exit Strategy / Holding Period

If you're already holding the stock

Holding Period: Minimum 3–5 years to benefit from branded expansion and margin improvement

Exit Strategy

Partial Exit near ₹900–₹915 (52-week high) if valuation remains stretched

Hold if ROE stays above 15% and PEG drops below 2.0

Watch debt levels and PAT growth — any slowdown or margin pressure may warrant trimming

Would you like a comparison with other mid-cap FMCG or export-oriented stocks to benchmark CCL’s potential?

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