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CCL Products (India) Ltd. Stock Analysis

Small Cap
Evaluated by 1383 users | BSE: 519600 | NSE: CCL |
Tea/Coffee
CCL Products (India) Limited is a Public Company limited by shares established under the laws of India. The company was formed in the year 1994 and commenced its commercial operations in the year 1995. The company is a profit making, Export Oriented Unit (“EOU”), with the ability...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
CCL Products (India) Ltd. has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 9.45%13.72%15.78%18.33%16.8%16.63%17.4%13.48%13.77%21.59%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 353490585611672677707823809823
Y-o-Y Gr. Rt.-38.8%19.4%4.5%10%0.8%4.5%16.4%-1.7%1.7%
Adjusted EPS (Rs.) 1.963.424.435.985.836.47.477.479.6817.63
Y-o-Y Gr. Rt.-74.5%29.5%35%-2.5%9.8%16.7%0%29.6%82.1%
Book Value per Share (Rs.) 16.8619.0222.5426.6530.4333.5840.4144.748.7959.57
Adjusted Net Profit 26.145.558.979.677.685.199.499.4129234
Net Op. Cash Flow (Rs. Cr.) 26.515.355.985.464.410755.572114-15.5
Debt to Cash Flow from Ops 5.879.72.711.381.451.071.784.283.52-28.24
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
CCL Products (India) Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 9.9%4.1%5.2%1.7%
Adjusted EPS 27.6%24.8%33.1%82.1%
Book Value per Share 15.114.413.822.1
Share Price 35.4% 2.2% -7.5% 26.5%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 12.319.0821.3224.3220.4319.9920.217.5520.7132.54
Operating Profit Margin (%) 18.2719.1319.422.3519.6721.2724.0420.2621.4524.36
Net Profit Margin (%) 7.49.310.0813.0211.5412.5614.0512.0715.9228.5
Debt to Equity 0.690.590.510.330.230.260.180.520.620.55
Working Capital Days 150129140142133144154160172195
Cash Conversion Cycle 10610199989295105109109135
Entity Percentage Holding
Promoters 46.19%
Institutions 28.30%
Non-Institutions 25.51%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of CCL Products (India) Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that CCL Products (India) Ltd. is a average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of CCL Products (India) Ltd.'s performance infers:

CCL Products (India) Ltd. earnings have grown by 24.8%, whereas share price has appreciated 2.2% CAGR over the past five years, indicating the company's share price is likely undervalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of CCL Products (India) Ltd. share prices over the last 10 years. Here is what we found out:

CCL Products (India) Ltd. share price has appreciated 22.3% annually over the past ten years.

CCL Products (India) Limited is a Public Company limited by shares established under the laws of India. The company was formed in the year 1994 and commenced its commercial operations in the year 1995. The company is a profit making, Export Oriented Unit (“EOU”), with the ability to import green coffee into India from any part of the world, and export the same to any part of the world, free of all duties. The company is promoted by Challa Rajendra Prasad, who is the

CCL Products (India) Limited is a Public Company limited by shares established under the laws of India. The company was formed in the year 1994 and commenced its commercial operations in the year 1995. The company is a profit making, Export Oriented Unit (“EOU”), with the ability to import green coffee into India from any part of the world, and export the same to any part of the world, free of all duties. The company is promoted by Challa Rajendra Prasad, who is the Chairman and Managing Director of the company.

CCL Products is engaged in the manufacture of Soluble Instant Spray Dried Coffee Powder, Spray Dried Agglomerated / Granulated Coffee, Freeze Dried Coffee, as well as Freeze Concentrated Liquid Coffee. Its soluble instant coffee is prepared from carefully chosen Arabica and Robusta coffee beans, roasted and processed to perfection, for an aroma and flavour that will bring real satisfaction instantly. In addition to 100% pure soluble instant coffee, also has the ability to supply flavoured coffee, decaffeinated coffee, organic coffee, Rainforest coffee, Fair Trade coffee, Dual and Triple certified coffee as well as Chicory-coffee mix as per the required specifications of the customer, and can also offer the customers the option of highest quality customized products. The company is also in a position to offer a range of in-house products to its customers.

CCL Products' state-of-the-art Soluble Instant Coffee Manufacturing Plant is located at Duggirala Mandal, Guntur District, Andhra Pradesh, India, with a current combined capacity of more than 20,000 MTs, per annum. It has the distinction of setting up India’s first Freeze Dried Instant Coffee Manufacturing Plant in the year 2005. The company has adapted Swiss and Brazilian Technology, purchased from world renowned pioneers in turnkey Instant/Soluble Coffee technology at its plant. This adaptation of technology has enabled CCL Products to produce international quality soluble coffee, which is currently being exported to more than 58 countries around the globe.

The company is ISO 9001:2008, HACCP and BRC Quality Management System (QMS) certified, and has achieved “Trading House” status. CCL Products is certified to produce Organic Coffee, Rain Forest Alliance Coffee and Fair Trade Coffee, in any combination, by the relevant organizations. The company’s Coffee Manufacturing Plant also holds Kosher and HALAL Certification.

Apart from maintaining highest standards of quality in respect of its products, the company has also vigorously devoted towards its responsibilities to observe standards in respect of environmental protection and ethical fair trade.

CCL Products has been successively awarded for its outstanding contribution to the global coffee market by the Ministry of Commerce, Government of India and the Coffee Board of India, the Government of Andhra Pradesh and other organizations.

Products

Pure Soluble Coffee

This is the primary product that CCL has to offer - 100% Pure Soluble Instant Coffee. This pure Soluble Coffee is prepared from carefully selected Arabica and Robusta green coffee from different parts of the world, roasted, blended and processed to suit the specific requirements of the customers. CCL is one of the only companies in the world that can offer all 4 types of Soluble Coffee from one single location:

  • Spray Dried Coffee Powder
  • Spray Dried Coffee Granules
  • Freeze Dried Coffee
  • Freeze Concentrate Liquid Coffee

Decaffeinated Coffee

Flavoured Coffee

Certified Coffees

Chicory-coffee mix

Company’s In-house Brands

  • Continental Spéciale
  • Continental Premium
  • Continental Supreme

Manufacturing Process

  • Green beans storage, cleaning and grading
  • Roasting and Grinding
  • Extraction / Clarification
  • Evaporation and Aroma recovery
  • Spray Drying
  • Agglomeration
  • Freeze-drying
  • Freeze Concentrated Liquid Coffee
  • Packing

Certifications

The company was granted the International Quality Systems Standard ISO 9001 : 2000 - Quality Management System Certificate in January, 2003 by American Quality Assessors - AQA International, LLC, accredited by the American National Accreditation Program for Registrars of Quality Systems, ANSI-RAB, which was subsequently upgraded to International Quality Systems Standard ISO 9001 : 2008 - Quality Management System Certificate in November, 2010.

The company also has the stamp of approval from Food Cert.BV-Netherlands-FSS-Food Safety System, in January 2004 for compliance with the Dutch National Board of Experts - HACCP - Analytical Critical Control Point standards. The qualified HACCP System standard declares that it covers the company’s activities of procurement of green coffee, storage, processing of Instant Soluble Coffee (cleaning, roasting, extraction, drying, agglomeration and soluble coffee storage) including packing, packed product storage and dispatch.

CCL has also obtained the British Retail Consortium - BRC Certificate, a stringent Quality Certificate which enables it to market its product in the UK and European supermarkets.

CCL can offer its customers speciality products with the following certifications:

Organic Certification

  • Organic coffee is produced by management practices which help to conserve and/or enhance soil structure, resilience and fertility by use of cultivation practices that use only non-synthetic nutrients and plant protection methods.
  • Further, though many producers grow coffee without use of synthetic agrochemicals, this passive approach is not sufficient to consider the produce organic in the absence of credible certification by an accredited certification agency.
  • CCL Products is in a position to provide credible certification from an accredited certification agency for our organic coffee products.

Fair Trade Certification

The Fair Trade organization works to ensure fair income / fair price to the farmers and workers and to responsibly address the problems of coffee farmers, workers in several developing countries. Offering fair price ensures all-round development of coffee farmers and their families in developing/ underdeveloped regions in Africa and Latin America.

The spirit of Fair Trade is:

(a) giving fair income / fair price to the farmers and workers, as well as,

(b) giving opportunity for fair consumption (consumption without exploiting the farmer/ worker).

Rain Forest Alliance Certification

  • This certification is granted by the Rainforest Alliance, after an independent third party awards its seal of approval, guaranteeing consumers that the products they are buying are the result of practices carried out according to a specific set of criteria, balancing ecological, economic and social considerations.
  • Rainforest Alliance certification is a comprehensive process that promotes and guarantees improvement in agriculture and forestry. CCL is committed to sustainable development and we are in a position to offer certification to the effect that our coffee was produced in compliance with strict guidelines protecting the environment, wildlife, workers and local communities.

Awards

CCL Products (India) Limited has been successively awarded for its outstanding contribution to the global coffee market by the Ministry of Commerce, Government of India as well as the Government of Andhra Pradesh.

  • The company received 'Export Performance Awards for EOU's in Andhra Pradesh' from the Chief Minister of Andhra Pradesh
  • The company received 'Export Performance Award' from the Union Minister of State for Commerce and Industry
  • The company received the Bharat Ratna M. Visvesvaraya Industrial Award - 2009 for Best Export Performance

Milestones

1961

  • Continental Coffee Limited was incorporated under the name of 'The Sahayak Finance & Investment Corporation Limited' as a Public Limited Company. The company was engaged in the business of hire purchase financing.

1993

  • The company changed its business to coffee related products and also its name to the present one, promoted by S.R.Y. Ankineedu Prasad, R.M. Seshadri and associates. The company's project was implemented by C. Rajendra Prasad.
  • The company is engaged in predominantly export oriented project for the manufacture of soluble coffee (Instant Coffee) with an installed capacity of 3600 MT per annum based on the world renowned Brazilian technology.

1995

  • As on June, the company offered 27,00,000 No. of Equity shares of Rs 10 each at a premium of Rs 10 per share to the existing shareholders through prospectus in the ratio of 1:3 (all were taken up).
  • On 3rd August, the company offered 27,00,000 No. of equity shares of Rs 10 each through public issue. Of which 4,75,000 shares were offered to NRI's on Preferential allotment basis of which only 2,77,400 shares were allotted. 1,73,000 shares were allotted on firm allotment basis to NRIs. Another 5,40,000 shares were allotted on firm allotment basis to financial institution. Another 5,00,000 shares were allotted to Mutual Funds.
  • 19,000 shares were offered on Preferential basis to employees of which only 1400 were allotted. Balance 9,93,000 shares along with 17,600 shares being unsubscribed portion from the employees quota were allotted to the public.

2001

  • The company has informed that Mr. Ian Breminer, Foreign Collaborator and Director has acquired 7,66,557shares of the company from the another Foreign Collaborator M/s. Brazilian Food Product, which constitutes5.762% of the paid up share capital of the company.

2002

  • Chintapalli Sirisha appointed as Company Secretary of Continental Coffee.
  • Members of the Exchange are hereby informed that Continental Coffee Ltd has reissued 7,66,000 equity shares which were earlier forfeited by the Company due to non-payment of allotment/call monies.

2003

  • Delisting of equity shares of the company from Madras, Calcutta & Hyderabad Stock Exchanges.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323
Research Analyst - INH000000719

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