Company being India’s largest manufacturer and exporter of instant coffee working with cost plus margin basis and having global reach in more than 85 countries and selling around 1000 different blends to customers.
Operating performance of CCL Products (India) or CCLP in 2QFY19 was ahead of our expectations. On a consolidated basis, revenues declined just 2% YoY, despite a strong base quarter and around 18% YoY decline in coffee prices.
Net Sales and PAT of the company are expected to grow at a CAGR of 12% and 13% over 2017 to 202oE, respectively.Hence, we say that, we are Overweight in this particular scrip for Medium to Long term investment.
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