Buy EPL, target price Rs 226: Motilal Oswal

Motilal Oswal has buy call on EPL Ltd. with a target price of Rs 226. The current market price of EPL is Rs 156.9. Time period given by analyst is year when EPL Ltd. price can reach defined target.

EPL Ltd., incorporated in the year 1982, is a Mid Cap company (having a market cap of Rs 4940.22 Crore) operating in Packaging sector.

EPL Ltd. key Products/Revenue Segments include Laminated Tubes, Royalty Income, Scrap and Export Incentives for the year ending 31-Mar-2021.



Financials
For the quarter ended 31-03-2022, the company reported a Consolidated Total Income of Rs 882.40 Crore, down -.46 % from last quarter Total Income of Rs 886.50 Crore and up 8.51 % from last year same quarter Total Income of Rs 813.20 Crore. Company reported net profit after tax of Rs 50.10 Crore in latest quarter.

Investment Rationale
The brokerage factors in the current volatile raw material scenario and lowers FY23/FY24 earnings estimate by 9%/7%. It values the stock at 20x FY24E EPS to arrive at TP of INR226.

Promoter/FII Holdings
Promoters held 51.91 per cent stake in the company as of 31-Mar-2022, while FIIs owned 14.58 per cent, DIIs 13.92 per cent.