EPL share price: Buy EPL, target price Rs 315: Motilal Oswal
EPL Ltd., incorporated in the year 1982, is a Mid Cap company (having a market cap of Rs 7854.43 Crore) operating in Packaging sector.
Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 813.20 Crore, up 5.57 % from last quarter Total Income of Rs 770.30 Crore and up 17.92 % from last year same quarter Total Income of Rs 689.62 Crore. Company reported net profit after tax of Rs 58.60 Crore in latest quarter.
Investment Rationale
The brokerage expects a revenue/EBITDA/PAT CAGR of 13%/17%/25% over FY21–23E. It values the stock at 25x FY23E EPS (~30% premium to three-year average P/E) due to a change in the management, a steady increase in revenue share from the Personal Care segment (higher margin biz and lower sensitivity to RM cost), and new product launches – which would aid growth.
Promoter/FII Holdings
Promoters held 52 per cent stake in the company as of March 31, 2021, while FIIs held 14.9 per cent, DIIs 13.5 per cent and public and others 19.6 per cent.
(Views and recommendations given in this section are the analysts’ own and do not represent those of ETMarkets.com. Please consult your financial adviser before taking any position in the stock/s mentioned.)
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