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

It's been a good week for CCL Products (India) Limited (NSE:CCL) shareholders, because the company has just released its latest second-quarter results, and the shares gained 3.4% to ₹701. CCL Products (India) missed revenue estimates by 3.8%, coming in at₹7.4b, although statutory earnings per share (EPS) of ₹5.54 beat expectations, coming in 7.9% ahead of analyst estimates. 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.

View our latest analysis for CCL Products (India)

Taking into account the latest results, the most recent consensus for CCL Products (India) from nine analysts is for revenues of ₹30.6b in 2025. If met, it would imply an okay 5.1% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to climb 10% to ₹22.60. In the lead-up to this report, the analysts had been modelling revenues of ₹31.3b and earnings per share (EPS) of ₹21.87 in 2025. So it's pretty clear that while sentiment around revenues has declined following the latest results, the analysts are now more bullish on the company's earnings power.

There's been no real change to the average price target of ₹759, with the lower revenue and higher earnings forecasts not expected to meaningfully impact the company's valuation over a longer timeframe. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values CCL Products (India) at ₹871 per share, while the most bearish prices it at ₹641. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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. We would highlight that CCL Products (India)'s revenue growth is expected to slow, with the forecast 11% annualised growth rate until the end of 2025 being well below the historical 22% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 11% annually. Factoring in the forecast slowdown in growth, it looks like CCL Products (India) is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards CCL Products (India) following these results. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. Even so, earnings per share are more important to the intrinsic value of the business. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on CCL Products (India). Long-term earnings power is much more important than next year's profits. We have estimates - from multiple CCL Products (India) analysts - going out to 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 3 warning signs for CCL Products (India) (2 are a bit concerning!) that we have uncovered.

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

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.