The CCL Products (India) Limited (NSE:CCL) Second-Quarter Results Are Out And Analysts Have Published New Forecasts

Last week, you might have seen that CCL Products (India) Limited (NSE:CCL) released its second-quarter result to the market. The early response was not positive, with shares down 7.8% to ₹987 in the past week. It looks like the results were a bit of a negative overall. While revenues of ₹12b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 4.7% to hit ₹9.75 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

Taking into account the latest results, the consensus forecast from CCL Products (India)'s twelve analysts is for revenues of ₹48.6b in 2027. This reflects a reasonable 3.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 8.7% to ₹37.59. Before this earnings report, the analysts had been forecasting revenues of ₹49.1b and earnings per share (EPS) of ₹37.74 in 2027. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

See our latest analysis for CCL Products (India)

It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹1,296. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on CCL Products (India), with the most bullish analyst valuing it at ₹1,510 and the most bearish at ₹1,059 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that CCL Products (India)'s revenue growth is expected to slow, with the forecast 7.1% annualised growth rate until the end of 2027 being well below the historical 25% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 11% annually. Factoring in the forecast slowdown in growth, it seems obvious that CCL Products (India) is also expected to grow slower than other industry participants.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at ₹1,296, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple CCL Products (India) analysts - going out to 2029, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for CCL Products (India) that you need to be mindful of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.