Buy CCL Products (India); target of Rs 326: CD Equisearch

CD Equisearch's research report on CCL Products (India)

According to report by IMARC Group, the global instant coffee market, which was worth $11.5bn in 2019 and has grown at a CAGR of 5% during 2014-19, is expected to exhibit moderate growth during 2020-25. It contends that lower caffeine content compared to brewed coffee, ease of preparation and health benefits has helped instant coffee gain popularity among working class population across the globe. Further, instant coffee manufacturers are introducing new coffee flavors in the market to expand their consumer base.

Outlook

Weighing odds we retain our buy rating on the stock with revised target of Rs 326 (previous target: Rs 309) based on 20x FY22e earnings.

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