Shares of CCL Products (India Ltd.), a company engaged in the production, trade, and distribution of coffee, jumped over 5 percent in trade on Tuesday to hit their highest level in 52 weeks.
The stock counter saw a spurt in trading volumes, with the number of shares changing hands on the BSE rising by over 2.7 times in morning trade.
Notably, the CCL Products stock has been a strong performer in the recent past, with the share price surging over 41 percent in the last year compared to a 9.5 percent rise in the benchmark Sensex. Year-to-date (YTD), the stock is up nearly 25 percent.
The company’s profit after tax (PAT) stood at Rs 58 crore, up 17 percent from a year ago. The gross profit margin was 44.6 percent, down 811 basis points compared with a year ago, but up 331 basis points sequentially as coffee prices saw a downward trend during the period.
The management remains confident of achieving 20-25 percent volume growth in the current fiscal. Moreover, a 10-15 percent price growth is expected to aid the company’s overall revenue growth of nearly 40 percent.
Post-earnings, brokerage house Axis Direct said that it maintained a high conviction ‘BUY’ rating on the stock with an unchanged target price of Rs 600 per share.
