Mumbai, July 29: Equirus Securities has maintained a ‘LONG’ recommendation on CCL Products (India) Ltd. following its Q1 FY27 performance, with the brokerage highlighting sustained volume growth and resilient EBITDA per kilogram as key positives. The company’s strong operating trajectory and favourable long-term growth prospects continue to support the positive investment view.
CCL Products remains well positioned to benefit from the structural growth in the global soluble coffee market, supported by rising coffee consumption, increasing demand for convenience products and a gradual shift towards premium offerings. The company’s diversified customer base and expanding manufacturing capabilities are expected to provide a strong foundation for sustained growth.
According to Equirus Securities, volume growth remains intact, reflecting healthy underlying demand across the company’s business segments. The continued momentum in volumes indicates that CCL Products is maintaining its competitive position despite a dynamic global operating environment.
A key highlight of the quarter was the resilience in EBITDA per kilogram, which remains an important indicator of the company’s operating profitability. The brokerage believes that the sustained EBITDA/kg performance demonstrates CCL Products’ ability to manage costs and maintain profitability while pursuing volume-led expansion.
The company’s focus on capacity expansion is also expected to support its growth trajectory over the medium to long term. Incremental capacity, coupled with healthy demand prospects, could enable CCL Products to capture additional opportunities in the global coffee market and strengthen its position across key geographies.
Equirus Securities remains positive on the company’s ability to deliver sustainable earnings growth, supported by volume expansion, operational resilience and long-term industry tailwinds. The brokerage believes that the combination of healthy volume growth and stable unit economics provides visibility for continued improvement in the company’s financial performance.
Key Investment Takeaways:
- Volume growth remains intact, reflecting healthy underlying demand and sustained business momentum.
- EBITDA/kg remains resilient, supporting the company’s profitability despite a changing cost environment.
- Capacity expansion provides a platform for long-term volume growth and market opportunity.
- Global soluble coffee demand offers structural growth opportunities for CCL Products.
- Diversified customer relationships and geographic presence strengthen business resilience.
- Investment view: LONG, supported by healthy volume growth, resilient operating profitability and favourable long-term growth prospects.
Overall, Equirus Securities remains constructive on CCL Products (India), with the company’s sustained volume momentum and resilient EBITDA/kg reinforcing confidence in its earnings trajectory. The brokerage has therefore assigned a ‘LONG’ recommendation, reflecting its positive view on the company’s growth prospects and operating fundamentals.