Buy CCL Products India, target price Rs 270: Antique Stock Broking

Antique Stock Broking has maintained buy rating on CCL Products India with a target price of Rs 270. The stock ended up 3.3 per cent at Rs 183.40 on Wednesday while the BSE Sensex closed 173.25 points down (-0.58 per cent) at 29,893.96.

CCL Products India Ltd., incorporated in 1961, has a market cap of Rs 2439.73 crore.

Investment Rationale

The brokerage continues to like company's rich experience, innovation and expertise in coffee blending and long standing customer relationships. Current valuation of 10 times FY22 EPS is still a discount of 50 per cent to its long term average despite much better return ratios compared to past, said Antique.

Financials

CCL Products India's key products/revenue segments include Coffee which contributed Rs 757.71 crore to sales value value (93.64 per cent of total sales value)for the year ending March 31, 2019.

For the quarter ended December 31, 2019, the company reported consolidated sales value of Rs 302.72 crore, up 1.35 per cent from last quarter sales value of Rs 298.69 crore and up 29.32 per cent from last year same quarter sales value of Rs 234.08 crore. The company reported net profit after tax of Rs 47.00 crore in the latest quarter.