CCL Products (India): A Strong Midcap Company with Positive Indicators for Growth

Nov 25 2024 06:56 PM IST
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CCL Products (India) is a midcap company in the tea/coffee industry with a high ROCE of 16.85% and low Debt to EBITDA ratio of 1.49 times, indicating strong management efficiency and ability to service debt. Technical analysis and institutional investors also support a positive outlook, but the company has shown poor long-term growth. Despite this, with a 'Buy' recommendation from MarketsMojo and attractive valuations, it is a stock worth considering.
CCL Products (India) is a midcap company in the tea/coffee industry that has recently caught the attention of investors. With a high ROCE of 16.85%, the company has shown strong management efficiency. Additionally, its low Debt to EBITDA ratio of 1.49 times indicates a strong ability to service debt.

Technical analysis also supports a bullish trend for the stock, with factors such as MACD, Bollinger Band, and OBV all pointing towards a positive outlook. Furthermore, the stock is currently trading at a discount compared to its historical valuations, making it an attractive option for investors.

Institutional investors also have a high stake in the company at 30.32%, indicating their confidence in its fundamentals. These investors have the resources and capability to thoroughly analyze companies, making their support a positive sign for CCL Products (India).

However, there are some risks to consider. The company has shown poor long-term growth, with net sales growing at an annual rate of 22.14% and operating profit at 10.42% over the last 5 years. Additionally, the company's results for September 2024 were flat, with the lowest operating cash flow and ROCE, and the highest debt-equity ratio.

Despite these risks, CCL Products (India) remains a strong midcap company in the tea/coffee industry with positive indicators for future growth. With a 'Buy' recommendation from MarketsMOJO and attractive valuations, it is definitely a stock to keep an eye on.
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