CCL Products

What is the impact on CCL due to recent surge in coco prices?

High raw material price would increase working capital needs, hence increased debt and negative impact on p&l due to interest.
I think this is a short term pain and may last until mid FY25.
Fitch ratings revised outlook to negative, this report has more details

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CCL-Products–Company-Update–17-Apr-2024.pdf (nirmalbang.com)

“Robusta coffee prices continue to make new highs on a daily basis.
Duration of future orders could be lower, say 3-6 months, thereby indicating lesser visibility than in the past.
While we remain positive, relatively lower demand visibility
and working capital debt overhang might offer a better entry point to
investors in the near term” - Nirmalbang’s view