CCL Products - On Expansion Mode Backed By Order Visibility: Nirmal Bang

Nirmal Bang Report

We recently interacted with the management of CCL Products India Ltd. to understand the outlook on underlying demand, status of expansion plans, margin drivers and update on the business-to-consumer business.

The management indicated that underlying demand for soluble coffee continues to remain strong. CCL Products volume growth is ahead of industry growth on account of new client acquisitions, increasing wallet share from existing clients and replacement of existing coffee processors across different parts of the world.

We believe that the company is in a position to clock 60,000 tonnes volume by FY26, which should translate into ~Rs 7.2 billion Ebitda, implying four-year compound annual growth rate of ~22%.

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