Although the overall coffee market has been facing excess supply challenge, very few players like CCL have superior R&D, product development capabilities and long-term client relationships. Considering the factors stated above, ongoing expansion and the fact that management maintains its growth outlook based (9MFY19 EBITDA already up 16% YoY), we believe that CCL’s underlying growth in the medium term will be in line with the long-term average. This, we believe is also reflected in the stock price, which declined from its top and is now available at an attractive valuation. The management stuck to its previous guidance of total US$20mn capex for FY20E (5,000tn agglomeration and 3,000tn packing capacity in total India capacity of 8,000tn and line balancing capacity in Vietnam of 3,500tn). After this capex, we expect better profitability on account of higher realisation.