CCL Products Q3 Results Review - Ebitda Below Expectations; Maintain Hold Rating: IDBI Capital

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..IDBI Capital Report.CCL Products India Ltd.'s products Q3 FY24 operating performance was below our expectations. Its Q3 FY24 sales jumped 24% YoY to Rs 6,645 million even though coffee exports were impacted by the Red sea issue (~Rs 450 million). However, Ebitda grew by only 10% YoY to Rs 1,109 million as Ebitda margin contracted by 212 basis points to 16.7% led by weak product mix. Net profit decreased by 13% YoY to Rs 633 million. Nevertheless, CCL continues to maintain its guidance of 18-20% volume growth and 18-20% Ebitda growth in FY24. However, likely increase in debt over FY23-26 remains a concern in our view. We cut our FY24/FY25 Ebtida forecast by 10%/11% and we introduce FY26 forecast in this report. We now value the stock at a price-to-earnings ratio of 20 times (earlier 24 times FY25) FY26E earnings per share to derive a target price of Rs 681 (earlier Rs 707) and maintain our 'Hold' rating on the stock..Click on the attachment to read the full report:.Varun Beverages Q3 Results Review - Strong 14% Volume Growth In A Difficult CY23: Systematix.DISCLAIMERThis 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.

CCL Products Q3 Results Review - Ebitda Below Expectations; Maintain Hold Rating: IDBI Capital

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