Accumulate CCL Products; target of Rs 337: CD Equisearch

CD Equisearch has recommended accumulate rating on CCL Products India with a target price of Rs 337 in its research report dated Jun 29, 2017.

June 30, 2017 / 16:34 IST

26 Aug, 2025 12:21

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CD Equisearch's research report on CCL Products India

Profits yo-yoed for much of the last fiscal for the loss in productivity (sales tumbled 39.5%) in the second quarter due to shutdown of plants in both Vietnam and India was followed by a rapid recovery in the third quarter - both income from operations and post tax earnings surged by 34.6% and 76.4% respectively. Increased demand for agglomerated products in Vietnam led to setbacks in volume growth in Q4, prompting setting up 3000 mt of agglomeration capacity, which would be production ready by Q2.

Outlook
On balance, we assign 'accumulate' rating on the stock with revised target of Rs 337 (previous target: Rs 270) based on 25x FY19e earnings (peg ratio: 1.6; three year average ttm P/E: 27x), over a period of 9-12 months.

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