EPL Results: An Investment Opportunity with Propack Ltd.

Friday, 16 August 2024, 21:00

EPL results indicate a strong investment strategy with a buy recommendation at a target price of Rs 275. Motilal Oswal has highlighted EPL Ltd.'s potential for growth backed by significant financial performance and market position. Fleet with prudent management and expanding sales, EPL is set for a robust future.

Economictimes — EPL Results: An Investment Opportunity with Propack Ltd.

EPL Results: Financial Overview and Projections

Motilal Oswal Financial Services has issued a buy recommendation for EPL Ltd., aiming for a target price of Rs 275. With a current market price of Rs 243.95, this Mid Cap company, established in 1982, has a market capitalization of Rs 7762.40 Crore and operates in the packaging sector.

Key Financial Metrics

Total Income for Q2 FY24: Rs 1013.90 Crore (down 3% from last quarter, up 10.18% year on year)
Net Profit after Tax: Rs 65.80 Crore
Promoter Holdings: 51.5%, FII: 11.35%, DII: 11.55%

Growth Potential

Motilal Oswal expects EPL to demonstrate healthy growth with a revenue/EBITDA/adjusted PAT CAGR of 8%/16%/30% over FY24-26. This is driven by effective cost rationalization measures and margin improvements in key markets.

Conclusion: Future Outlook

The estimated valuation of EPL incorporates a 20x FY26E EPS, which is about a 20% discount to its five-year average P/E of 24.7x. Consequently, the stock is poised for upward momentum and represents a lucrative investment opportunity.

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.