Edelweiss' research report on CCL Products India
CCL Products India’s (CCL) Q4FY17 top line and bottom line belied estimates due to capacity constraint in India and lower contribution from Vietnam. Gross margin plummeted 200bps YoY and 850bps QoQ on lower sales in Vietnam and diversion of volumes from India to Vietnam. This led to PAT declining 4% YoY to INR 353mn (INR 502mn estimate).
Outlook
Nonetheless, factoring the miss in Q4FY17 numbers and muted FY18E growth, we revise down FY18E and FY19E EPS 16% each. Maintain ’BUY’ with TP of INR 296 (INR 354 earlier) based on 20x FY19E EPS. Higher contribution from value‐added products and consequent expansion in margin & return ratios are potential re‐rating triggers.
For all recommendations, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
