CCL Products (India) Ltd is Rated Buy by MarketsMOJO

Current Rating and Its Significance

MarketsMOJO assigns CCL Products (India) Ltd a 'Buy' rating, indicating a positive outlook for the stock based on a comprehensive evaluation of multiple factors. This rating suggests that investors may consider adding the stock to their portfolios, expecting favourable returns relative to the market. The rating was adjusted on 18 Nov 2025, reflecting a recalibration of the company’s prospects, but the analysis below focuses on the latest data as of 18 February 2026 to provide a current perspective.

Quality Assessment

As of 18 February 2026, CCL Products maintains a good quality grade, underscoring its robust business model and operational efficiency. The company has demonstrated consistent growth in net sales and profitability, which are key indicators of quality. Specifically, net sales for the latest six months reached ₹2,177.29 crores, growing at an impressive rate of 45.48%. Profit after tax (PAT) for the same period stood at ₹201.13 crores, reflecting a growth of 46.82%. These figures highlight the company’s ability to expand its revenue base while maintaining healthy profit margins.

Valuation Perspective

Currently, CCL Products is considered attractively valued. The company’s return on capital employed (ROCE) for the half year is at a healthy 15.5%, which supports its valuation metrics. The enterprise value to capital employed ratio stands at 4.4, indicating that the stock is trading at a discount compared to its peers’ historical averages. This valuation attractiveness is further supported by a price/earnings to growth (PEG) ratio of 1, suggesting that the stock’s price fairly reflects its earnings growth potential. Investors looking for value within the FMCG sector may find this combination of solid returns and reasonable valuation appealing.

Financial Trend and Performance

The financial trend for CCL Products remains positive as of 18 February 2026. Over the past year, the stock has delivered a remarkable return of 70.73%, significantly outperforming many peers in the FMCG sector. Profit growth over the same period has been robust at 37.2%, signalling strong operational performance and effective cost management. The company’s ROCE of 14.27% for the half year is among the highest in its segment, reflecting efficient capital utilisation. These financial trends reinforce the company’s capacity to generate shareholder value sustainably.

Technical Outlook

From a technical standpoint, CCL Products is rated as mildly bullish. The stock has shown resilience with a 6.94% gain year-to-date and a 10.87% increase over the past six months. Shorter-term movements include a 3.97% rise over the last month, despite a slight 0.74% dip over three months. The one-day change as of 18 February 2026 was a modest +0.14%, indicating stability in trading. This technical profile suggests that while the stock is not in an aggressive uptrend, it maintains positive momentum that could support further gains.

Institutional Confidence

Institutional investors hold a significant stake in CCL Products, with 32.54% ownership. This level of institutional holding is noteworthy as these investors typically conduct thorough fundamental analysis before committing capital. Their confidence adds a layer of validation to the company’s prospects and can provide stability to the stock price during market fluctuations.

Sector and Market Context

Operating within the FMCG sector, CCL Products benefits from steady demand dynamics and consumer staples’ defensive characteristics. The company’s small-cap status offers growth potential, especially given its recent strong financial performance and attractive valuation. Compared to broader market indices and sector peers, CCL Products’ returns and fundamentals position it favourably for investors seeking exposure to quality mid-sized FMCG companies.

What This Rating Means for Investors

For investors, the 'Buy' rating on CCL Products (India) Ltd signals a favourable risk-reward profile based on current data. The company’s solid quality metrics, attractive valuation, positive financial trends, and supportive technical indicators combine to create a compelling investment case. While the rating is not the highest possible, it reflects a balanced view that the stock is well-positioned for growth but may not be without some risks or volatility.

Investors should consider this rating as part of a broader portfolio strategy, recognising that the company’s fundamentals and market position provide a sound foundation for potential capital appreciation. The presence of strong institutional backing further enhances confidence in the stock’s prospects.

Summary of Key Metrics as of 18 February 2026

To recap, the key data points supporting the current rating include:

• Net sales growth of 45.48% over the latest six months, reaching ₹2,177.29 crores
• PAT growth of 46.82% in the same period, amounting to ₹201.13 crores
• ROCE at 15.5% with an enterprise value to capital employed ratio of 4.4
• One-year stock return of 70.73%, outperforming many FMCG peers
• Institutional holdings at 32.54%, indicating strong investor confidence

These figures collectively underpin the 'Buy' rating and highlight the company’s current strength in the market.

Looking Ahead

As the FMCG sector continues to evolve, CCL Products’ ability to sustain growth and maintain operational efficiency will be critical. Investors should monitor upcoming quarterly results and sector developments to assess ongoing performance. The current rating reflects a positive outlook but also encourages vigilance to ensure the company meets or exceeds expectations in a competitive environment.

In conclusion, CCL Products (India) Ltd’s 'Buy' rating by MarketsMOJO as of 18 November 2025, combined with the latest data as of 18 February 2026, presents a well-rounded investment opportunity for those seeking exposure to a quality FMCG stock with attractive valuation and solid growth prospects.

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