Buy CCL Products Ltd

CCL Products Ltd


CCL products is 100% exporter of Coffee products
Fundamentally sound company with very good dividend payment track record.
PE 7.6 (FY 07)

International scenario and outlook for Coffee is +ve for next 2-3 years from pricing point of view. The company has presence in both US as well as EU mkts.

The stock has witnessed long bear run in last 6-8 months taking it down from 560 levels to the lows of 192 as stock is prominently managed by few large players in the market.

Avg trading volume is in the range of 5-15k. Historically rebound had been quick and sharp.
Recently, Reliance Mutual Fund purchased 9,00,000 shares at 250 rupees.

The International Coffee Organisation (ICO) on Thursday revised upwards its forecast of 2007-08 global coffee production to nearly 114 million 60-kg bags from its previous prediction of 112 million. The ICO also gave a preliminary forecast of world coffee consumption in 2007 of at least 122 million bags, up from 120.3 million in 2006.

All these factors together indicates very good buying opportunity from medium to long term view with target og 350+
At these levels downside is limited i.e. 180 level atmost


BUY CCL PRODUCTS for 12-15 months at CMP of Rs. 235 with Target price of 350+.

Medium Risk High Rewards

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