CCL Products Receives Quality Grade Upgrade Amid Strong Financial Performance

CCL Products (India), a small-cap player in the FMCG sector, has recently undergone a quality adjustment reflecting its strong financial performance. The company has demonstrated robust sales growth over the past five years, achieving a rate of 26.22%. Additionally, its EBIT growth during the same period stands at 16.07%, showcasing effective operational management.
The company's financial health is further evidenced by its EBIT to interest ratio of 8.91 and a manageable debt to EBITDA ratio of 2.47. With a net debt to equity ratio of 0.62, CCL Products maintains a solid balance sheet, which is complemented by a tax ratio of 15.24% and a dividend payout ratio of 23.94%. Notably, the company has no pledged shares, indicating strong ownership confidence.

In comparison to its peers, CCL Products stands out with a higher quality assessment, while competitors like Vintage Coffee and Andrew Yule & Co exhibit varying performance metrics. CCL's return on capital employed (ROCE) and return on equity (ROE) average at 14.32% and 16.35%, respectively, further solidifying its competitive position in the market. Overall, the evaluation revision reflects the company's strong fundamentals and market resilience.