In this post we will introduce you to a company which is in the beverages industry and which is export-oriented. CCL products Ltd. imports coffee beans from various parts of the world and processes them to manufacture different varities of granules and liquid coffee and exports the products to various parts of the world. As you might have understood by now, majority of revenue comes from export market. The company is also collaborating with various retailers to penetrate in the domestic market. This is particularily relevant now as coffee culture is growing and domestic market is looking attractive.
The company is very undervalued and hence gives enough room for upside. Let us take a look at the financials of the company :
| 2012 | 2011 | 2010 | 2009 | 2008 | |
| Sales (in Cr) | 501.85 | 373 | 464 | 474 | 408 |
| Profit (in Cr) | 36.52 | 26.45 | 30 | 17 | 38.40 |
| OPM% | 18.1 | 19.06 | 15 | 11.68 | 14.55 |
| ROCE% | 14 | 11 | 12.43 | 9.85 | 12.02 |
| ROE% | 15.28 | 12.20 | 15 | 08 | 23 |
| Debt/Equity | 1.04 | 1.15 | 1.18 | 1.36 | 1.35 |
| Interest Coverage Ratio | 5.54 | 4.43 | 4.25 | 2.87 | 3.5 |
| 2013 | 2014 | |
| PE | 6.69 | 5.85 |
The
financials of the recent 9 months of FY13 YOY are as follows :
sales grown 32.78%
profit grown 66.76%
opm reg 19.42%
EPS reg 27.45 with total paid up equity of 1.33 cr shares having face value of Rs.10.
At the time of posting CCL was trading at CMP o 282.10.
Update : Post share split and issue of bonus shares in August 2013, the CMP at the time of post should be read as 28.2
The sales in Q3FY13 increased from 137cr to 207cr. An increase of 51.1%YOY. Profits increased from 8.75vr to 15.24cr. An increase of 74% YOY. OPM registered is 21% indicating that the strength of business is intact.
The company has manufacturing and processing plants in Switzerland and India (in Andhra Pradesh). In FY13Q3, the company has commissioned a third plant in Vietnam, thus increasing capacity. This clearly shows the demand for the product and consequent future earning growth. It is already reflected in FY13Q3 results as above.
FY14 will see full impact of these developments and thus gives visibility of further EPS growth.
As a concluding note we say that CCL is a good stock to invest as downside risk is more protected and upside is open due to current low valuation.
sales grown 32.78%
profit grown 66.76%
opm reg 19.42%
EPS reg 27.45 with total paid up equity of 1.33 cr shares having face value of Rs.10.
At the time of posting CCL was trading at CMP o 282.10.
Update : Post share split and issue of bonus shares in August 2013, the CMP at the time of post should be read as 28.2
The sales in Q3FY13 increased from 137cr to 207cr. An increase of 51.1%YOY. Profits increased from 8.75vr to 15.24cr. An increase of 74% YOY. OPM registered is 21% indicating that the strength of business is intact.
The company has manufacturing and processing plants in Switzerland and India (in Andhra Pradesh). In FY13Q3, the company has commissioned a third plant in Vietnam, thus increasing capacity. This clearly shows the demand for the product and consequent future earning growth. It is already reflected in FY13Q3 results as above.
FY14 will see full impact of these developments and thus gives visibility of further EPS growth.
As a concluding note we say that CCL is a good stock to invest as downside risk is more protected and upside is open due to current low valuation.
