CCL Products (India) Ltd is Rated Buy by MarketsMOJO

Current Rating and Its Significance

MarketsMOJO currently assigns a 'Buy' rating to CCL Products (India) Ltd, indicating a positive outlook for the stock based on a comprehensive evaluation of multiple factors. This rating suggests that investors may consider adding or holding the stock in their portfolios, anticipating favourable returns relative to the market. The rating was adjusted from 'Strong Buy' to 'Buy' on 18 Nov 2025, reflecting a recalibration of the stock’s overall assessment rather than a negative outlook.

Here’s How the Stock Looks Today

As of 07 February 2026, CCL Products (India) Ltd demonstrates robust financial health and market performance. The company has delivered a remarkable 52.65% return over the past year, significantly outperforming broader indices such as the BSE500. This strong price appreciation is supported by solid earnings growth and operational efficiency, making the stock attractive for investors seeking growth within the FMCG sector.

Quality Assessment

The company holds a 'good' quality grade, reflecting strong operational metrics and consistent profitability. Recent results for the six months ending December 2025 show net sales of ₹2,177.29 crores, growing at an impressive 45.48%. Profit after tax (PAT) for the same period rose by 46.82% to ₹201.13 crores. These figures underscore the company’s ability to expand its revenue base while maintaining healthy profit margins. Additionally, the return on capital employed (ROCE) stands at a healthy 14.27% for the half year, indicating efficient utilisation of capital to generate earnings.

Valuation Perspective

Valuation metrics for CCL Products (India) Ltd are currently attractive, with a valuation grade reflecting this positive stance. The company’s ROCE of 15.5% combined with an enterprise value to capital employed ratio of 4.3 suggests that the stock is trading at a discount relative to its peers’ historical valuations. The price-to-earnings-to-growth (PEG) ratio is approximately 1, signalling a balanced valuation that factors in the company’s growth prospects. This valuation profile makes the stock appealing for investors looking for quality growth at reasonable prices.

Financial Trend and Stability

The financial trend for CCL Products remains positive, supported by strong sales and profit growth. The company’s ability to sustain double-digit growth in both revenue and earnings over recent periods highlights its operational resilience. Institutional investors hold a significant 32.54% stake in the company, reflecting confidence from sophisticated market participants who typically conduct thorough fundamental analysis. This institutional backing adds a layer of stability and credibility to the stock’s outlook.

Technical Outlook

From a technical standpoint, the stock is mildly bullish. Recent price movements show steady gains, with a 7.15% increase over the past month and a 14.84% rise over six months. The stock’s performance year-to-date is also positive at 4.93%, indicating sustained investor interest and momentum. This technical strength complements the fundamental positives, suggesting that the stock is well-positioned to maintain its upward trajectory in the near term.

Market Performance and Comparative Analysis

CCL Products has consistently outperformed the broader market indices over multiple time frames. Its 52.65% return over the last year surpasses the average returns of the BSE500, reinforcing its status as a market-beating stock. Over three years, one year, and three months, the stock has demonstrated superior performance, making it a compelling choice for investors seeking long-term capital appreciation within the FMCG sector.

Investor Takeaway

For investors, the 'Buy' rating on CCL Products (India) Ltd signals a favourable risk-reward profile. The company’s strong fundamentals, attractive valuation, positive financial trends, and supportive technical indicators collectively justify this recommendation. While the rating is one notch below 'Strong Buy', it still reflects confidence in the company’s growth trajectory and market position.

Investors should consider the stock as a quality addition to portfolios focused on the FMCG sector, especially given its demonstrated ability to generate superior returns and maintain operational excellence. The current market environment, combined with the company’s financial strength, suggests that CCL Products is well placed to continue delivering value to shareholders.

Summary of Key Metrics as of 07 February 2026

- Market Capitalisation: Smallcap segment

- Mojo Score: 71.0 (Buy grade)

- 1-Year Return: +52.65%

- Latest Six Months Net Sales Growth: 45.48%

- Latest Six Months PAT Growth: 46.82%

- ROCE (Half Year): 14.27%

- Institutional Holdings: 32.54%

These figures highlight the company’s strong operational performance and market acceptance, reinforcing the rationale behind the current 'Buy' rating.

Conclusion

In conclusion, CCL Products (India) Ltd’s current 'Buy' rating by MarketsMOJO reflects a well-rounded assessment of its quality, valuation, financial trends, and technical outlook. Investors looking for growth opportunities in the FMCG sector may find this stock an attractive proposition given its solid fundamentals and market-beating returns. As always, investors should consider their individual risk tolerance and investment horizon when evaluating this recommendation.

Upgrade at special rates, valid only for the next few days. Claim Your Special Rate →