CCL - Swing Trade Analysis with AI Signals

Last Updated Time : 20 Dec 25, 07:00 am

Swing Trade Rating: 3.5

📊 CCL shows moderate potential for swing trading. The stock is trading slightly above its 50 DMA (958 ₹) and well above its 200 DMA (853 ₹), with RSI at 52.3 indicating neutral momentum. MACD is positive (6.78), suggesting short-term bullishness. However, high P/E of 70.5 compared to industry PE of 15.8 and weak ROE/ROCE limit valuation comfort. Optimal entry would be near 950–960 ₹. If already holding, consider exiting near 1,050–1,070 ₹ unless momentum breaks higher.

✅ Positive

• 📈 Market cap of 12,913 Cr. provides stability.
• 💹 Strong quarterly PAT growth: 112 Cr. vs 31.4 Cr. (+306% variation).
• 📊 EPS of 13.7 ₹ supports earnings base.
• 📉 Debt-to-equity ratio of 0.69, manageable leverage.
• 📊 DII holdings increased (+0.64%), showing domestic investor confidence.

⚠️ Limitation

• 📉 High P/E of 70.5 compared to industry PE of 15.8.
• 📉 Weak ROCE (10.1%) and ROE (8.02%).
• 📉 PEG ratio negative (-6.95), suggesting poor valuation relative to growth.
• 📉 Current trading volume lower than weekly average, showing reduced momentum.
• 📉 FII holdings decreased (-0.12%).

🚨 Company Negative News

No major fresh negative news reported, but high valuation, weak return ratios, and reduced FII interest remain concerns.

🌟 Company Positive News

Strong quarterly profit growth and rising DII support highlight improving sentiment despite valuation risks.

🏭 Industry

The coffee and food processing industry trades at an average PE of 15.8. CCL’s valuation is significantly higher, reflecting growth optimism but also overvaluation risk.

📌 Conclusion

CCL is a fair swing trade candidate with strong profit growth but stretched valuations. Best entry near 950–960 ₹ (close to 50 DMA). If already holding, exit near 1,050–1,070 ₹ unless momentum breaks resistance. Risk-reward is moderate, with caution advised due to high P/E and weak ROE/ROCE.

I can also prepare a peer comparison of CCL with Tata Coffee or Nestlé India to highlight relative swing trade opportunities in the food & beverage sector.