CCL Products (India) Limited

Consumer Defensive — Packaged Foods · NSE

₹1,007.80−₹77.60 (−7.15%)

DalalBaazaar Score

63 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

The 60-second version of CCL Products (India) Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

CCL Products (India) Limited engages in the production, trading, and distribution of coffee and related products in India.

IndustryPackaged Foods

SectorConsumer Defensive

Employees1,336

Annual revenue₹4,457 Cr

How does it make money?

Turns over ₹4,457 Cr a year. Of every ₹100 of sales, about ₹9 reaches shareholders as profit, with ₹17 left at the operating level before interest, tax and depreciation. Each of its 1,336 employees supports ₹3.34 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹3.34 Cr

Who are its competitors?

The closest listed comparisons in its industry are NESTLE INDIA LIMITED, BRITANNIA INDUSTRIES LTD, TATA CONSUMER PRODUCT LTD, DABUR INDIA LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 20.5%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 16.6% against a peer median of 51.0% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE51.0%

What is the outlook?

11 analysts covering the stock expect revenue to grow about 15.9% and earnings to grow about 25.3% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+15.9%

Est. earnings growth+25.3%

Analysts11

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +115% while net margin moved -36% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+115%

Margin effect-36%

DalalBaazaar Score

63/ 100

Good

Weighted across six categories. Every point is explained below.

• P/E of 29.1x already prices in growth
• P/E is close to its own historical median of 36.3x
✗ P/B of 5.72x is a steep premium to book

Quality vs. Valuation

Company Quality

66/ 100

Good

How good the business is, ignoring the share price entirely.

Valuation

53/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

29.1x

3Y Median

36.3x

40 monthly readings · mean 36.7x · range 26.8x–50.8x

Sector Median

51.7x

median of 4 sector peers

🟢Current valuation is approximately 20% below its 3y median of 36.3x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 44% below the peer median of 51.7x.

vs. its own history

Fair

36.3x median over 40 months · -20%

vs. sector peers

Cheap

51.7x median of 4 peers · -44%

vs. generic bands

Fair

15x–35x

EV/EBITDA

19.7x

PEG

2.65

What's Good / What's Bad

🟢 What's Going Well3

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
High return on capital employed
ROCE of 20.5% is the mark of a business that converts capital into profit efficiently.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

2 items require attention · 2 watch

🟡Debt is increasingFinancial
Total debt is up 44% over 3 years.
🟡Margins are compressingFinancial
EBITDA margin is down 2.8 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 20.5% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Cheaper than its peers
It trades 44% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 19.3% to 16.6%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1Revenue growth stays above 22% a year✓ 29.1% CAGR
Latest reported year was 13.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 15%✓ 16.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹788 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.8x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 18%✓ 20.5%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

10 / 12 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

7 good · 3 neutral · 1 weak

Market Cap

₹13,438 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

29.1x

Fair

Fairly valued against the generic band

P/B Ratio

5.72x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹34.62

Profitable

Profitable on a per-share basis

ROE

16.6%

Strong

Strong capital efficiency

ROCE

20.5%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.56x

Low

Conservative leverage

Revenue Growth (YoY)

13.8%

Healthy

Healthy top-line growth

Profit Growth (YoY)

61.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.57%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹788 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

21.2x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

13.1%

Average

Average margins

Net Margin

9.4%

Average

Average bottom-line conversion

Current Ratio

1.49

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.02

Defensive

Steadier than the market

52W Range Position

44%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1050.2 / 1083.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

42.6

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹2,071 Cr	₹2,654 Cr	₹3,106 Cr	₹4,457 Cr	+29.1%
EBITDA	₹400 Cr	₹449 Cr	₹559 Cr	₹738 Cr	+22.6%
EBITDA Margin	19.3%	16.9%	18.0%	16.6%	—
PAT (Net Profit)	₹284 Cr	₹250 Cr	₹310 Cr	₹388 Cr	+11.0%
EPS	₹21.35	₹18.76	₹23.26	₹29.1	+10.9%
ROE	19.0%	14.9%	15.8%	16.6%	—
ROCE	19.1%	15.6%	17.7%	20.5%	—
Total Debt	₹920 Cr	₹1,621 Cr	₹1,813 Cr	₹1,324 Cr	+12.9%
Free Cash Flow	-₹159 Cr	-₹458 Cr	-₹128 Cr	₹788 Cr	—

🟢 Revenue has grown at 29.1% a year over 3 years.

🟢 EBITDA has grown at 22.6% a year over 3 years.

🔴 EBITDA Margin has fallen from 19.3% to 16.6% over 3 years (-2.8 pts).

🟢 PAT (Net Profit) has grown at 11.0% a year over 3 years.

🟢 EPS has grown at 10.9% a year over 3 years.

🔴 ROE has fallen from 19.0% to 16.6% over 3 years (-2.4 pts).

🟢 ROCE has risen from 19.1% to 20.5% over 3 years (+1.4 pts).

🔴 Total Debt has grown at 12.9% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹159 Cr to ₹788 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹4,326 Cr

Total Liabilities

₹1,982 Cr

Cash & Equivalents

₹217 Cr

Operating Cash Flow

₹858 Cr

Capex

-₹70 Cr

Shareholding (proxy)

Institutional Holding

26.4%

Insider Holding

49.1%

Corporate Actions

Dividend Rate

₹5.75

Ex-Dividend Date

01 Sept 2026

Analyst Consensus

Recommendations

9 Buy · 2 Hold · 0 Sell

Target Price (Mean)

₹1,313

+30.3% vs CMP

Target Range

₹1,060 – ₹1,511

Peer Comparison

Company	P/E	ROE
NESTLE INDIA LIMITED	59.8x	79.9%
BRITANNIA INDUSTRIES LTD	44.1x	51.0%
TATA CONSUMER PRODUCT LTD	59.3x	7.5%
DABUR INDIA LTD	34.7x	17.2%

Recent News

4 mixed2 general

CCL Products Share Price

Upstox, 16 Oct

What CCL Products (India) Bulls Got Right

Simply Wall Street, 14 Oct

CCL Products shares fall 9% on Q2 results; brokerages see up to 30% upside

Business Today, 16 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

CCL Products shares see biggest single-day fall since 2020 - Know why the stock fell

CNBC TV18, 16 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

CCL Products Shares Fall After September Quarter Results

Kalkine India, 16 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Earnings call transcript: CCL Products shares fall after Q2 2026 results

Investing.com India, 16 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Profitability · Risk

MiddlingGrowth

WeakValuation

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself.

All 5 tripwires holding · see Key things to watch ↑