CCL Products (India) Limited Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next
As you might know, CCL Products (India) Limited (NSE:CCL) recently reported its first-quarter numbers. Revenues were ₹12b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of ₹8.76 were also better than expected, beating analyst predictions by 15%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, the most recent consensus for CCL Products (India) from twelve analysts is for revenues of ₹48.5b in 2027. If met, it would imply a credible 5.1% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to swell 18% to ₹38.13. Before this earnings report, the analysts had been forecasting revenues of ₹48.5b and earnings per share (EPS) of ₹37.33 in 2027. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
See our latest analysis for CCL Products (India)
There's been no major changes to the consensus price target of ₹1,314, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values CCL Products (India) at ₹1,501 per share, while the most bearish prices it at ₹1,141. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that CCL Products (India)'s revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 6.9% growth on an annualised basis. This is compared to a historical growth rate of 25% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 10% 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 biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around CCL Products (India)'s earnings potential next year. 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 ₹1,314, 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 forecasts for CCL Products (India) going out to 2029, and you can see them free on our platform here.
Even so, be aware that CCL Products (India) is showing 2 warning signs in our investment analysis , you should know about...
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.