Valuation Metrics: A Closer Look
As of the latest assessment, CCL Products trades at a price-to-earnings (P/E) ratio of 38.20, a figure that, while elevated, remains within an attractive range when benchmarked against its historical averages and peer group. The price-to-book value (P/BV) stands at 6.19, signalling a premium valuation but one that is justified by the company’s consistent return on equity (ROE) of 16.21% and return on capital employed (ROCE) of 15.48%. These returns underscore efficient capital utilisation and profitability, supporting the current valuation levels.
Comparatively, peers such as Vintage Coffee exhibit a similar P/E ratio of 38.17 but carry a lower EV/EBITDA multiple of 29.46, while Andrew Yule & Co presents a markedly riskier profile with a P/E of 221.24 and negative EV/EBIT metrics, highlighting CCL’s relative stability and valuation discipline within the FMCG space.
Market Capitalisation and Price Movement
CCL Products currently holds a market capitalisation grade of 3, reflecting its mid-cap status within the FMCG sector. The stock price closed at ₹967.70, up 3.00% on the day, with a 52-week trading range between ₹475.00 and ₹1,072.65. The recent price appreciation aligns with the company’s strong fundamentals and positive market sentiment, despite the slight moderation in valuation grade from a previous strong buy to a buy rating as of 18 Nov 2025.
Performance Against Benchmarks
Over various time horizons, CCL Products has significantly outperformed the Sensex. The stock delivered a 48.17% return over the past year compared to the Sensex’s 9.56%, and an impressive 273.77% return over five years against the Sensex’s 68.97%. Even over a decade, the stock’s 374.36% gain dwarfs the benchmark’s 236.47%, underscoring its long-term growth trajectory and resilience.
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Enterprise Value Multiples and Growth Prospects
CCL Products’ enterprise value to EBIT (EV/EBIT) ratio is 27.31, while the EV/EBITDA stands at 22.04, both reflecting a premium valuation consistent with its growth profile and profitability. The EV to capital employed ratio of 4.23 and EV to sales of 3.76 further indicate efficient asset utilisation and revenue generation relative to enterprise value.
The PEG ratio of 1.63 suggests that the stock’s price is reasonably aligned with its earnings growth potential, balancing valuation with expected expansion. Although the dividend yield is modest at 0.52%, the company’s reinvestment in growth and operational efficiency appears to be the primary driver of shareholder value.
Shift in Valuation Grade: Implications for Investors
The downgrade in valuation grade from very attractive to attractive, accompanied by a change in the overall mojo grade from strong buy to buy, signals a subtle recalibration by analysts. This adjustment reflects the stock’s price appreciation and the narrowing margin of safety, yet it remains a compelling investment opportunity given the company’s strong fundamentals and superior returns.
Investors should note that while the P/E and P/BV multiples have increased relative to historical levels, they remain justified by the company’s robust ROE and ROCE figures, which are well above industry averages. The stock’s consistent outperformance against the Sensex over multiple time frames further supports its valuation.
Sector Context and Peer Comparison
Within the FMCG sector, CCL Products stands out for its disciplined capital management and steady growth. Its valuation metrics, while premium, are more attractive than some peers with riskier profiles or stretched multiples. For example, Andrew Yule & Co’s valuation appears excessive and risky, whereas Vintage Coffee’s fair valuation and lower EV/EBITDA multiple suggest a more cautious market stance.
CCL’s mojo score of 71.0 and buy grade reflect a balanced view that recognises both the company’s strengths and the valuation premium it commands. This nuanced perspective is crucial for investors seeking exposure to quality FMCG stocks with growth visibility and reasonable price points.
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Conclusion: Valuation Attractiveness Balanced by Strong Fundamentals
CCL Products (India) Ltd’s recent valuation grade adjustment reflects a maturing market view as the stock price approaches its 52-week high of ₹1,072.65. Despite this, the company’s fundamentals remain robust, with strong returns on equity and capital employed, efficient asset utilisation, and consistent outperformance relative to the Sensex.
For investors, the shift from very attractive to attractive valuation signals a need for careful entry timing but does not diminish the stock’s appeal as a quality FMCG investment. The current P/E of 38.20 and P/BV of 6.19 are supported by solid growth prospects and operational efficiency, making CCL Products a compelling buy within its sector.
As the company continues to deliver strong earnings growth and maintain disciplined capital management, it is well positioned to reward shareholders over the medium to long term, albeit with a more measured valuation premium than before.
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