CCL Products
Axis Direct sees 10% upside in CCL Products, sets target at ₹1,245
Axis Direct has projected a 10% upside in CCL Products, setting a target price of ₹1,245 per share based on the stock's recent closing level of ₹1,130. The brokerage's outlook follows a strong performance in the June quarter, where the company reported a 13.7% year-on-year revenue growth, driven by a 20% increase in volume. This growth was supported by healthy demand across segments and expanding market share for its Continental brand in key urban markets like Delhi and Mumbai.
The brokerage highlighted improvements in profitability, with EBITDA rising 21.7% year-on-year and margins expanding by 106 basis points to 16.1%, aided by stabilised green coffee prices during the quarter. Despite potential near-term margin pressures from the El Niño effect, management remains confident, guiding for 15% growth in both EBITDA and volumes for FY27, backed by favourable supply conditions in Brazil.
Axis Direct also noted the company's ongoing balance sheet strengthening, with net debt declining to ₹963 crore in Q1 FY27, down ₹90 crore sequentially. Term loans stood at ₹517 crore, with scheduled repayments of ₹140 crore in FY27, around ₹200 crore in FY28, and the remainder in FY29. This deleveraging trend is expected to enhance financial flexibility.
Green coffee prices remained stable in the ₹3,300–₹3,800 range during the quarter, although mild volatility persists. While the upcoming November–December harvest in Vietnam could be affected by El Niño, long-term price stability is anticipated due to robust Brazilian supply.
Looking ahead, Axis Direct expects sustained demand momentum over the medium to long term, supported by existing customer relationships, new client acquisition, capacity expansion, and optimal plant utilisation. The stock has delivered a 115% return since March 2025, rising to ₹1,130, and recently touched an all-time high of ₹1,242. Over the past decade, CCL Products has delivered a 359% return, reflecting its strong financial performance and growing product demand.
Market Spider rewrites market reports for information only—not investment advice. Trading in securities involves risk of loss.