Please refer to important disclosures at the end of this report
1
CCL Products (India) Limited was founded with the vision of creating only the
finest and the richest instant coffee in the world. CCL Products is engaged in the
manufacture of Soluble Instant Spray Dried Coffee Powder, Spray Dried
Agglomerated / Granulated Coffee, Freeze Dried Coffee, Roasted Coffee, Roast
& Ground Coffee, as well as Freeze Concentrated Liquid Coffee. Growth in
business from Vietnam plant and improvement in sales from domestic markets
both in the institution and branded segments led to growth in sales and net profit
margins of the company. The management has maintained its volume growth
guidance of 12-15% for FY17. Management has not monetised any of the earlie
r
received licenses due to lack of appropriate price in market. They expect to
receive `1-1.5cr in FY17. Management has committed to previous level o
f
targets for FY17.
W
ith sufficient production capacity abroad and expected
sustainable operating profit margins on the back of strong relationship with
export customers along with the back-to-back nature and pre-sale of contracts
entered by the company could help the company reach the targeted growth. The
growth in operating cash flow coupled with low capex plans are expected to
strengthen the balance sheet. The company has good consistent profit growth o
f
38% CAGR and healthy return on equity (RoE) of 22% over the last 5 years. The
company has been maintaining a healthy dividend payout of 24.66%. Hence
Buy.
BUY
CMP `350
Stock Info
Sector
Beta
Bloomberg Code
Shareholding Pattern (%)
Promoters 44.8
MF / Banks / Indian Fls 6.0
FII / NRIs / OCBs 33.8
Indian Public / Others 15.4
Abs. (%) 3m 1yr 3yr
Sensex 8.2 17.6 32.0
CCL Products 30.5 89.0 671.3
0.6
Reuters Code CCLP.BO
2
BSE Sensex 28,946
Nifty 8,935
Face Value (
`
)
Tea & Coffee
Market Cap (
`
cr) 4,658
52 Week High / Low 372/180
Avg. Daily Volume 21,004
Vaibhav Agrawal
022 – 3935 7800 Ext: 6808
CCL Products (India)
Others | Tea & Coffee
March 14, 2017
CCL Products (India) | Tea & Coffee
March 14, 2017
2
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
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Disclosure of Interest Statement CCL Products (India)
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
over 12 months investment
p
eriod
)
: Reduce
-5% to -15%
)
Sell
(
< -15
)