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
Robusta prices year-to-date CY2024 are trading ~30% higher than CY23 average, which itself was ~30% higher than 10-year average. Investors are concerned about the working capital requirements associated with it for CCL Products India Ltd.
While we believe that the management's debt guidance largely factors in the anticipated price increase, our stress test suggests earnings per share downside in the ‘worst case scenario' to be 9%/7% in FY25E/FY26E.
Despite supply side challenges, demand continues to be solid and CCL Products has commissioned India capacity during Q4 FY24. Maintain Buy (25 times price-to-earning) post roll-forward of valuation to FY26E earnings.
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.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
