Monday, August 9, 2010


For CCCL, we have derived valuation by using Free Cash Flow to Firm (FCFF). Using FCFF method, the value of CCCL has ended up in the range of Rs. 98 to Rs. 132 as shown in the valuation sheet. The average valuation comes to Rs. 114. The current order book size is @ Rs. 4500 Cr which is more than 2 times the Net Sales of FY10. At the current price of Rs. 84, the market is giving
Net Sales Growth of 15% for the next four years as per our valuation model that is quite conservative considering the company has grown at the average rate of 34% in the last three years. We see the stock is undervalued by 30%-35%.

To read the full report: CCCL