CCL Products Q2 Results Review - Robust Performance Amid Elevated Coffee Prices: IDBI Capital

IDBI Capital Report

CCL Products India Ltd.'s Q2 FY25 performance was above both our and street expectations. Sales jumped 21.5% YoY to Rs 7.4 billion, driven by robust volume growth (up 10% YoY) and higher realization (up 12% YoY).

Gross margin contracted by 218 bps YoY to 39.8%, due to high coffee bean prices. However, Ebitda grew 24.7% YoY to Rs 1.4 billion, with Ebitda margin expanding by 48 bps YoY to 18.6%, driven by an improved product mix. Profit after tax grew by 21.5% YoY to Rs 740 million.

CCL maintained its volume and Ebitda growth guidance of 10-20% for FY25. Management also indicated coffee prices remain volatile and expect stabilization post Dec-24 with the arrival of Vietnamese crop, which is likely to increase long term contracts.

We largely maintain our EPS forecast and value the stock at a PER of 25 times FY26E EPS, deriving a target price of Rs 734. We maintain our Hold rating on the stock.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.