Results: CCL Products (India) Limited Exceeded Expectations And The Consensus Has Updated Its Estimates

Last week saw the newest first-quarter earnings release from CCL Products (India) Limited (NSE:CCL), an important milestone in the company's journey to build a stronger business. Revenues were ₹7.7b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of ₹5.36 were also better than expected, beating analyst predictions by 18%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for CCL Products (India)

Following the latest results, CCL Products (India)'s ten analysts are now forecasting revenues of ₹31.3b in 2025. This would be a decent 13% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to step up 11% to ₹21.75. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹31.3b and earnings per share (EPS) of ₹21.87 in 2025. 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.

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 6.6% to ₹717. It looks as though they previously had some doubts over whether the business would live up to their expectations. 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 ₹868 and the most bearish at ₹629 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 17% growth on an annualised basis. That is in line with its 21% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 10% per year. So although CCL Products (India) is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple CCL Products (India) analysts - going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - CCL Products (India) has 2 warning signs (and 1 which can't be ignored) we think 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.