CCL Products soars 16% after Q4 net profit surges 57% YoY; stock up 290% in 5 years

Multibagger small-cap stock in focus on May 06: CCL Products (India), engaged in the production, trading, and distribution of coffee, witnessed a remarkable surge in its share price during Tuesday’s trade (May 6), spiking 16% to hit the day’s high of ₹687 apiece after reporting a stellar performance for the March quarter (Q4FY25) on strong revenue growth.

The company, post-market hours on Monday, reported its highest-ever quarterly net profit of ₹102 crore in Q4FY25. In the same period last year, it had posted a net profit of ₹65 crore, while in the December quarter, the profit stood at ₹63 crore.

Revenue from operations during the reporting quarter came in at ₹836 crore, compared to ₹727 crore in Q4FY24 and ₹758 crore in Q3FY25. On the operating front, it delivered strong consolidated EBITDA growth, up 38% YoY to ₹163 crore in Q4FY25, with EBITDA margins expanding by 400 basis points YoY to 20%.

Despite facing significant challenges—such as rising green coffee prices, intense competition, and supply chain disruptions due to geopolitical issues—CCL Products managed to achieve healthy volume growth and maintain profitability on a per-kilo basis.

According to analysts, the company remains on track with its capacity expansion plans across subsidiaries. These efforts, coupled with a focused strategy to increase the share of premium and value-added products, aim to strengthen its market position.

The newly established Freeze-Dried Coffee (FDC) facility in Vietnam, with a capacity of 30,000 metric tons, is currently operating at 40–50% capacity utilization, showing steady progress toward full-scale operations. Additionally, the company aims to strengthen its presence in key markets, including the UK, US, and other strategic geographies, as part of its global expansion strategy.

Looking ahead, the company expects rising coffee prices may drive a shift in consumer behavior—from out-of-home to in-house consumption—which bodes well for the instant coffee segment. Recent estimates suggest that India’s domestic coffee market is growing at a healthy 10–15% YoY.

Meanwhile, the Board of Directors has recommended a final dividend of ₹5 per equity share of ₹2 each for the financial year ended March 31, 2025.

Stellar Performer

The stock, which was trading at ₹174 per share in May 2020, has surged 286% to its current value of ₹672. Over the last decade, it has delivered a massive return of 1,244%.

In September, the stock reached a record high of ₹855 per share. This extraordinary rally is attributed to the company’s strong financial performance, supported by increasing demand for its products.

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.