JM Financial initiates buy on Essel Propack, target price Rs 190

JM Financial has initiated coverage on Essel Propack in the long term with a buy rating and a target price of Rs 190. The stock ended up 1.2% at Rs 149.35 on Thursday while BSE Sensex closed 70.70 points down at 40,779.59.

Company Financials

For the quarter ended 30-09-2019, the company has reported consolidated sales of Rs 730.54 crore, up 15.99% from last quarter sales of Rs 629.83 crore and up 6.89% from last year same quarter sales of Rs 683.47 crore. The company has reported net profit after tax of Rs 61.00 crore in the latest quarter.


The company’s top management includes Mr.Amit Dixit, Mr.Amit Jain, Mr.Aniket Damle, Mr.Animesh Agrawal, Mr.Davinder Singh Brar, Mr.Qi Yang, Mr.Uwe Ferdinand Roehrhoff, Mr.Vinay Mokashi, Ms.Sharmila Karve. The company has Ford Rhodes Parks & Co. LLP. as its auditors.

Investment Rationale

For the immediate term, steady recovery in AMESA and East Asia Pacific should help drive earnings growth trajectory, said JM Financial. The brokerage expects expect Essel Propack to deliver earnings CAGR of 17.6% over FY19-22 and scale-up its ROIC to 18% from 12.2%. As on 30-09-2019, the company has a total of 315,405,275 shares outstanding.