CCL Products (India) Analysis

dividend

Pros

• Dividends per share have increased over the past 10 years.
• Dividends paid are well covered by earnings (3.2x coverage).
• Dividends after 3 years are expected to be well covered by earnings (2.4x coverage).
• CCL Products (India)'s pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).

Cons

• Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
• CCL Products (India)'s dividend is below the markets top 25% of dividend payers in India (3.08%).

future

Pros

• Cash flow for CCL Products (India) is expected to increase by more than 50% in 2 years time.
• CCL Products (India)'s earnings growth is expected to exceed the low risk savings rate of 7.2%.
• Performance (ROE) is expected to be above the current IN Food industry average.
• An improvement in CCL Products (India)'s performance (ROE) is expected over the next 3 years.
• CCL Products (India)'s revenue growth is expected to exceed the India market average.

Cons

• CCL Products (India)'s earnings are expected to grow by 13.8% yearly, however this is not considered high growth (20% yearly).
• CCL Products (India)'s earnings growth is positive but not above the India market average.
• CCL Products (India)'s earnings are expected to increase but not above the low risk growth rate next year.
• CCL Products (India)'s net income is expected to increase but not above the 50% threshold in 2 years time.
• CCL Products (India) is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
• CCL Products (India)'s revenue is expected to increase but not above the 50% threshold in 2 years time.
• CCL Products (India)'s revenue is expected to grow by 7.4% yearly, however this is not considered high growth (20% yearly).

health

Pros

• CCL Products (India) is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• CCL Products (India) is profitable, therefore cash runway is not a concern.
• CCL Products (India) is profitable, therefore cash runway is not a concern.
• Debt is covered by short term assets, assets are 1.4x debt.
• CCL Products (India)'s cash and other short term assets cover its long term commitments.
• The level of debt compared to net worth has been reduced over the past 5 years (80.1% vs 44.7% today).
• Interest payments on debt are well covered by earnings (EBIT is 30.7x coverage).

Cons

• Debt is not well covered by operating cash flow (15%, less than 20% of total debt).
• CCL Products (India)'s level of debt (44.7%) compared to net worth is high (greater than 40%).
• High level of physical assets or inventory.

management

Pros

• The tenure for the CCL Products (India) board of directors is about average.
• Challa's compensation has been consistent with company performance over the past year, both up more than 20%.
• More shares have been bought than sold by CCL Products (India) individual insiders in the past 3 months.
• The tenure for the CCL Products (India) management team is about average.

Cons

• Challa's remuneration is higher than average for companies of similar size in India.

misc

Pros

Cons

• CCL Products (India) has significant price volatility in the past 3 months.

past

Pros

• CCL Products (India)'s year on year earnings growth rate has been positive over the past 5 years.
• CCL Products (India) used its assets more efficiently than the IN Food industry average last year based on Return on Assets.

Cons

• CCL Products (India)'s 1-year earnings growth is negative, it can't be compared to the 5-year average.
• CCL Products (India)'s use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
• CCL Products (India) has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
• CCL Products (India)'s 1-year earnings growth is negative, it can't be compared to the IN Food industry average.

value

Pros

• 519600 outperformed the Market in India which returned -14.5% over the past year.
• BSE:519600 is up 23% outperforming the Food industry which returned 5% over the past month.
• BSE:519600 is up 23% outperforming the market in India which returned 8% over the past month.

Cons

• CCL Products (India)'s share price is above the future cash flow value, it's not available at a moderate discount (< 20%).
• CCL Products (India)'s share price is above the future cash flow value, it's not available at a substantial discount (< 40%).
• CCL Products (India) is overvalued based on assets compared to the IN Food industry average.
• CCL Products (India) is poor value based on expected growth next year.
• CCL Products (India) is overvalued based on earnings compared to the IN Food industry average.
• CCL Products (India) is overvalued based on earnings compared to the India market.
• 519600 underperformed the Food industry which returned 18.8% over the past year.