CCL Products (India) Ltd - Q4 FY21 Result Update - YES Securities

(Rating: BUY, TP: Rs382, Upside: 22.4%)

View - We fine-tune our EPS estimates to factor in lower growth but better margins and reiterate our BUY rating on the company with a PT of Rs 382 based on 20x FY23E earnings. We are factoring in a 14%/16%/18% growth in revenue/EBITDA/PAT over FY21-23E with 20% average ROCE.

Result summary - Overall performance ahead of estimates led by a strong recovery in India operations despite softness in Vietnam; revenue/EBITDA/PAT growth of 25%/21%/17% respectively.

Topline - Revenue growth of 25% yoy to Rs 3.3bn - India business grew 33% (helped by shipments of orders deferred from 3Q), subsidiaries grew 12% with Vietnam business muted while India branded and Switzerland saw strong growth.

Margins - EBITDA margin dipped only 100bps to 25.7% with standalone margins increasing 240bps to all-time highs of 30.2% given higher small pack sales and subsidiaries margins declining 890bps to 16.1% mainly due to higher freight costs

Shares of CCL PRODUCTS (INDIA) LTD. was last trading in BSE at Rs.327.7 as compared to the previous close of Rs. 312. The total number of shares traded during the day was 130834 in over 3560 trades.

The stock hit an intraday high of Rs. 342.6 and intraday low of 313.35. The net turnover during the day was Rs. 43280648.

Source : Equity Bulls

Keywords