Rahul Arora, CEO at Nirmal Bang Institutional Equities told CNBC-TV18, "In CCL products we initiated about Rs 80 thereabout and we recently upgraded our target price on the stock to about Rs 245. The results were strong expectedly so because the ram up that is happening on volumes both on India and Vietnam is quite strong. If you look at the management guidance they are looking to up their volumes in FY16 by 25 percent. Our call is that over the next two years this company will give you a 40 percent CAGR growth in earnings."
"This was a company operating at about 12 percent return on equity (ROE) and return on capital (ROC) in FY14, the last completed financial year. We are expecting that in two years to double to about 25 percent and at least holding if not bettering their margin profile from here. So a company that is giving you that kind of doubling of returns ratios currently going at 16-17 times, it still looks good to us. Results were very strong, management pedigree is good and even at this price so slightly lower if you get it continue to be a buyer in this stock," he added.
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