Axis Direct sees 10% upside in CCL Products, target Rs 1,245

Domestic brokerage Axis Direct has set a target price of Rs 1,245 for CCL Products, implying a 10% upside from the current market price of Rs 1,130. The stock has gained 115% since March 2025 and has surged 550% from its May 2020 level of Rs 174. Axis Direct cites strong Q1 FY27 performance, with revenue up 13.7% year-on-year, 20% volume growth, and a strengthening balance sheet as key drivers.

The brokerage noted that CCL Products' EBITDA grew 21.7% YoY, with margins expanding to 16.1%, helped by stable green coffee prices in the Rs 3,300, Rs 3,800 range. The company's net debt fell by Rs 90 crore quarter-on-quarter to Rs 963 crore. Management has guided for 15% growth in both EBITDA and volumes in FY27, supported by favourable supply from Brazil, though potential El Niño effects could affect the upcoming Vietnam harvest.