Buy CCL Products, advises CA Rudramurthy BV

CA Rudramurthy BV of Vachana Investments told CNBC-TV18, "I still see a lot of steam still left in CCL Products. Normally market will always take quality stocks which have growth prospects and clarity with the management. In the latest quarterly results which CCL gave, it grew 25 percent on its topline whereas bottom-line was up about 49 percent, Rs 30.2 crore of June quarterly profit was seen in the company. It has a return on investment of 25 percent and this stock has a long way to further go from current level. There is also capacity addition happening in the stock and they are also venturing into new product avenues for the coming year. Management sees Rs 1,000 crore total revenue outlook for the entire year and a profit expectation of Rs 125-130 crore on a conservative basis." "Keeping these fundamental factors in mind and also a lot of visibility in its future earnings, I still recommend this stock at current level to buy and lot of deep pocketed guys and as well as smart money including fund action has happened to this stock at around Rs 195-200. So I don’t see a bottom or a down move on this stock to come anywhere below Rs 190-200. One can accumulate this stock in this fair range of Rs 200-225 levels and expect a move towards levels of Rs 350-400 in a time span of one to two years," he said.Disclosure: Analyst does have holdings on CCL Products and has also recommended to few of his clients.