CCL Products (India) Ltd is Rated Buy

Current Rating and Its Significance

MarketsMOJO’s 'Buy' rating for CCL Products (India) Ltd indicates a positive outlook on the stock, suggesting it is expected to deliver favourable returns relative to the broader market. This rating reflects a balanced assessment of the company’s quality, valuation, financial trends, and technical indicators. Investors should view this as a recommendation to consider adding or holding the stock in their portfolios, based on its current fundamentals and market position.

Quality Assessment

As of 05 January 2026, CCL Products maintains a good quality grade. This is supported by its robust operational performance, including record quarterly net sales of ₹1,126.73 crores and an operating profit to interest ratio of 6.04 times, the highest recorded. The company’s profit before tax excluding other income grew by 43.7% compared to the previous four-quarter average, signalling strong earnings momentum. Such operational strength underpins the company’s ability to sustain growth and manage costs effectively.

Valuation Perspective

The stock currently holds a very attractive valuation grade. With a return on capital employed (ROCE) of 15.5%, the company demonstrates efficient use of capital to generate profits. Its enterprise value to capital employed ratio stands at 4, indicating the stock is trading at a discount relative to its peers’ historical valuations. This valuation attractiveness is further supported by a price/earnings to growth (PEG) ratio of 1.5, suggesting the stock’s price reasonably reflects its earnings growth potential. For value-conscious investors, this presents an opportunity to invest in a fundamentally sound company at a favourable price point.

Financial Trend and Profitability

Currently, the company’s financial metrics indicate a positive financial grade. Over the past year, CCL Products has delivered a total return of 26.04%, outperforming the BSE500 benchmark. Profit growth has been strong, with a 23.5% increase in profits over the same period. The company’s ability to generate consistent earnings growth while maintaining operational efficiency highlights a favourable financial trend. Additionally, institutional investors hold a significant 32.36% stake, which has increased by 0.52% over the previous quarter, reflecting confidence from knowledgeable market participants.

Technical Outlook

The stock’s technical grade is mildly bullish, supported by recent price movements and momentum indicators. While the stock has experienced some short-term volatility, including a 3.68% decline over the past month and a 4.53% drop in the last week, it has shown resilience with a 6.57% gain over three months and a 3.54% rise over six months. Year-to-date, the stock is down 3.00%, but its longer-term performance remains strong. This technical profile suggests a cautiously optimistic outlook, with potential for further gains as market conditions evolve.

Market Position and Sector Context

Operating within the FMCG sector, CCL Products is classified as a small-cap company. Despite its size, it has demonstrated market-beating performance over multiple time frames, including one year, three years, and three months. This consistent outperformance relative to the broader market indices underscores the company’s competitive positioning and growth potential within its sector.

Investor Takeaway

For investors evaluating CCL Products (India) Ltd, the current 'Buy' rating reflects a well-rounded assessment of the company’s strengths and market position as of 05 January 2026. The combination of good quality, very attractive valuation, positive financial trends, and mildly bullish technical signals suggests the stock is well placed for continued growth. While short-term price fluctuations are evident, the company’s fundamentals and institutional backing provide a solid foundation for medium to long-term investment considerations.

Investors should consider this rating as a guide to the stock’s potential, balancing it with their individual risk tolerance and portfolio strategy. The detailed financial and technical data support a constructive view, but as always, ongoing monitoring of market conditions and company performance remains essential.

Summary of Key Metrics as of 05 January 2026

• Mojo Score: 74.0 (Buy Grade)


• Market Cap: Small Cap


• Return on Capital Employed (ROCE): 15.5%


• Enterprise Value to Capital Employed: 4


• PEG Ratio: 1.5


• Institutional Holdings: 32.36%, increased by 0.52% last quarter


• 1-Year Stock Return: +26.04%


• Quarterly Net Sales: ₹1,126.73 crores (highest recorded)


• Operating Profit to Interest Ratio: 6.04 times (highest recorded)


• Profit Before Tax (excluding other income): ₹125.61 crores, up 43.7% vs previous 4Q average

These figures illustrate the company’s robust financial health and market performance, reinforcing the rationale behind the current 'Buy' rating.

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