BQ Prime'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 BQ Prime's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
IDBI Capital Report
CCL Products India Ltd. Q2 FY24 result was below of our expectations. Its Q2 FY24 sales jumped 19.9% YoY to Rs 6,076 million. Ebitda grew by 12.7% YoY to Rs 1,099 million and net profit increased by 5.3 YoY to Rs 609 million.
Despite the plant shut down at Vietnam, CCL continues to target 18-20% volume growth and 18-20% Ebitda growth in FY24. However, sharp increase in debt (to fund aggressive expansion) to over Rs 14 billion over FY23-25 remains a concern in our view.
We cut our FY24/FY25 Ebitda forecast by 3%/6% but still expect 19% Ebitda compound annual growth rate over FY23-25. However, given rising levels of debt we now value the stock at a price-to-earnings of 24 times (earlier 26 times) FY25E earning per share to derive a target price of Rs 707 (earlier Rs 822) and downgrade the stock to a 'Hold' rating from a 'Buy' earlier.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime 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 BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
