Today we will analyze CCL Products (India) Limited share that is listed in BSE and NSE. We will analyze it on Technical parameters and Fundamental parameters. This is the company is involved in the coffee business. They are producing, trading, and distributing it mainly in India but have exported to countries like Vietnam, Switzerland, and other European countries.
Fundamental Study:
- Market Cap – Rs 5300 Cr: This is very good
- Stock P/E – Rs 29.2: Little high but considerable
- Book Value – Rs 81.7: Very Good
- Dividend Yield – 0.88 % (33% of face value) : Good
- ROCE – 17.0 % – Very Good
- ROE – 18.1 % – Very Good
- EPS – 13.7 (Increeasing continoulsy)
Other Important Points:
- Increase in sales QoQ (Dec 2020 to March 2021) – 12%
- Jump in Operating Profit QoQ (Dec 2020 to March 2021) – 23%
- Reserves are huge and increasing
- Fixed assets are increasing
- FIIs have increased their position in the stock.
- The coffee business is booming like anything after the Pandemic. Other stocks of this sector are also increasing fast. Tata Coffee is another major stock of this sector.
Technical Study
- The stock was having Inverse Head and Shoulder pattern and given breakout from there on 3rd May’21 with heavy volumes. The share price settled to Rs 315 there.
- Trendline breakout and retest are also seen before breakout as per point 1 above.
- Breaking all-time high with huge volumes on 2nd July’21.
- Retesting the 2nd July breakout on 5th& 6th July.
The expected target of the stock:
the targets have been calculated through the Fibonacci method. These are as follows-
- 1st Target isRs 482 (23% upside) in 3 months time frame.
- 2nd target is 680 (73% upside) in a 1-year timeframe.
Disclaimer: I am not a SEBI registered advisor. This research is not a Buy recommendation from my side. Take your decision after consulting your financial advisor OR study yourself before investing.
