CCL Products (India) Ltd. (NSE: CCL) is a leading Indian company engaged in the production, trading, and distribution of coffee. They operate across India, Vietnam, and Switzerland.
Current Stock Price
- ₹589.50 (as of July 4, 2024, 1:17 IST)
Recent Performance
- Up 0.13% from the opening price today
- Trading within the 52-week range of ₹551.60 – ₹749.50
Financials
- Market Cap: ₹7,809.62 Cr
- P/E Ratio: 31.67
- Dividend Yield: 0.93%
- ROCE: 12.42%
- ROE: 15.80%
STRENGTH
- Consistent revenue growth: 17.52% average growth over the past 3 years.
- Strong operating margins: Maintained an average of 20.94% in the last 5 years.
- Healthy financial position: Indicated by a high interest coverage ratio of 8.85.
- Established dividend payer: Offers a decent dividend yield.
WEAKNESS
- Relatively high valuation: P/E ratio suggests the stock may be expensive compared to earnings.
- Lower tax rate: Might raise concerns about future tax liabilities.
- Potential for capitalized interest costs: Needs further investigation.
OPPORTUNITIES
- Growing coffee consumption in India and globally.
- Expansion into new markets and product segments.
THREATS
- Volatility in coffee bean prices.
- Competition from other coffee companies.
- Economic slowdown impacting consumer spending.
- Technical Breakout in Sight?: The technical analysis paints an interesting picture. The stock has been trading sideways in a range for some time. This can be interpreted as a period of consolidation before a potential breakout. Here’s where it gets exciting: if the stock manages to close above ₹630 on a weekly basis, it could signal a significant price increase. Analysts suggest potential price targets of ₹750 and even ₹1050.
Disclaimer: The information provided in this blog post is for informational purposes only and should not be considered as financial advice. While the content is based on publicly available data and analysis, investing involves inherent risks. Please conduct your own thorough research and consult with a financial advisor before making any investment decisions.