CCL Products India can move to Rs 200: SP Tulsian

CCL Products India can move to Rs 200 in next twelve months, says SP Tulsian, sptulsian.com.

Tulsian told CNBC-TV18, "CCL Products India is the second largest coffee exporters after Tata Coffee and in fact if you see the price rise in Tata Coffee that is because of this Starbucks alliance by Tata Global. Tata Coffee is the subsidiary of Tata Global. But if you see the coffee business, the company, the per se industry has been doing well."
He further added, "CCL Products has a wide range of coffee makers whether you talk of instant coffee, soluble coffee, liquid, granulated, they make all type of coffees. They have their set-up in Andhra Pradesh and they have the overseas set-up also presently operational in Switzerland and setting up second set-up in Vietnam."
"Going by the financial performance also, the company has very good financial performance in fact the topline in first nine months of FY12 has already been achieved what they have achieved in whole of the FY11 to the extent of about Rs 360 crore. If you take a call on EPS, the EPS which has been close to about Rs 17 for first nine months of FY12 are likely to have an EPS of close to about Rs 22-23."
"Going forward because of the new capacity additions taken place in the last six months from 14,000 tonne per annum to 22,000 tonne per annum, I am expecting the profits to improve considerably in FY13 and the EPS should be, in my view, at anywhere between Rs 28 and Rs 30."
"If you take the minimum conservative single digit applications also of P/E multiple, the share has potential to move to about Rs 275-300 in next one year. But taking a conservative call and the stock has already risen in last one week by about 15-20% because it has been languishing at about Rs 120-125, I am expecting that price can move to about Rs 200 in next twelve months or so."