March 07, 2017 / 16:33 IST
CCL Products, India’s largest exporter of bulk instant coffee, is set to grow at revenue and earnings CAGR of 12.6% and 16.7% in FY16-19E, respectively, largely driven by its capacity expansion and increasing utilisation levels. At present, CCL has a combined capacity of 30000 tonnes per annum (TPA) from its facilities across India, Vietnam and Switzerland.
Outlook
As we roll over our estimates to FY19E, revenue, earnings are expected to witness a CAGR of 12.6%, 16.7%, respectively, in FY16-19E with an elevated EBITDA margin of 22.5% in FY19E. Though we remain positive on the company’s long term growth prospects, we are changing our recommendation to HOLD due to the recent run up in the stock price with a target price of Rs 365, valuing it at 25x its FY19E EPS of Rs 14.6.
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!
