Buy EPL, target price Rs 210: Motilal Oswal Financial Services

Motilal Oswal Financial Services has buy call on EPL with a target price of Rs 210. The current market price of EPL is Rs 152.45.

EPL, incorporated in the year 1982, is a Mid Cap company (having a market cap of Rs 4846.34 Crore) operating in Packaging sector.

EPL key Products/Revenue Segments include Laminated Tubes, Service Charges, Royalty Income, Scrap and Export Incentives for the year ending 31-Mar-2022.


Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 949.20 Crore, down -.60 % from last quarter Total Income of Rs 954.90 Crore and up 7.07 % from last year same quarter Total Income of Rs 886.50 Crore. Company has reported net profit after tax of Rs 63.50 Crore in latest quarter.

The company’s top management includes Mr.Davinder Singh Brar, Mr.Anand Kripalu, Mr.Animesh Agrawal, Mr.Dhaval Buch, Mr.Amit Dixit, Mr.Aniket Damle, Ms.Sharmila Abhay Karve, Mr.Uwe Rohrhoff. Company has Walker Chandiok & Co. LLP as its auditors. As on 31-12-2022, the company has a total of 32 Crore shares outstanding.

Investment Rationale
With the softening of raw material prices and price hikes taken across regions in recent months, the brokerage expects the sequential recovery in margin witnessed in 3QFY23 to continue going forwards. The brokerage expects a revenue/EBITDA/adjusted PAT CAGR of 12%/20%/34%,respectively, over FY23-25. Factoring in muted 3QFY23 earnings, we lower our earnings estimates forFY23/FY24/FY25 by 1%/8%/5%, respectively.

Promoter/FII Holdings
Promoters held 30.74 per cent stake in the company as of December ended quarter of 2022, while FIIs owned 37.18 per cent, DIIs 16.19 per cent.