CCL Products Q4 Results Review: Strong Execution Led by Favorable Product Mix; Nirmal Bang Maintains 'Buy'

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Nirmal Bang Report

CCL Products India Ltd. delivered a strong performance in Q4 FY25, materially exceeding both our estimate and consensus estimates. The company reported 56% YoY growth in PAT, despite only 15% revenue growth, driven by a 38% YoY rise in Ebitda. This was led by sharp margin expansion at the subsidiary level, primarily due to the execution of high-margin end-customer contracts. 

The consolidated Ebitda margin stood at 19.5%, while the subsidiary margin expanded to 28.6%, supported by a favourable mix of high-margin contracts, optimized blends across geographies, and procurement efficiencies. Although the margin improvement is commendable, we believe it is more prudent to focus on absolute Ebitda growth, as margins may remain non-linear due to fluctuations in the contract mix, end-customer pricing, and green coffee costs.

We are factoring in a revenue/Ebitda/PAT CAGR of 17%/18%/24%, driven by CCL’s balanced strategy of penetrating into developing markets and gaining market share in mature markets.

The management has guided for 15%–20% Ebitda growth over the coming years, supported by a mix of volume expansion and margin levers.

We maintain our Buy rating on the stock, assigning a 23x PE multiple on FY27E EPS (three-year average of one year forward P/E @ 26x) with a target price of Rs 823.

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.