Stock Snapshot
Price Performance
Recommendation Rationale
Growth opportunity with execution challenges.
Basis of our Recommendation
EPACK Durable Limited is strategically investing in capacity expansion and diversification to enhance resilience and support margin improvement. While the company is optimistic about growth prospects driven by new facilities and product initiatives, it faces challenges from declining revenues in the RAC segment and regulatory uncertainties impacting profitability. Overall, the outlook remains cautiously optimistic with potential growth catalysts on the horizon.
Why We Like This Stock
- Strategic investments in capacity expansion and localization
- Diversification into SDA, LDA, and Components segments enhancing resilience
- New Greenfield facility expected to support new product categories
Things To Watch Out For
- Declining revenues and margins due to RAC demand weakness
- Regulatory uncertainties related to PLI income reversal
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 1,420 | 2,171 | 1,894 | 1,939 | 2,100 |
| Profit Before Tax (Cr.) | 49 | 74 | 9 | 22 | 26 |
| PBT Margin | 3.4% | 3.4% | 0.5% | 1.1% | 1.3% |
| Net Profit (Cr.) | 40 | 58 | 8 | 19 | 23 |
| EPS | 4.2 | 6.1 | 0.8 | 2.0 | 2.4 |
Company Overview
Show Company Profile
EPACK Durable Limited manufactures original design of room air conditioners in India. The company provides window air conditioners, window inverter air conditioners, indoor units, and outdoor units; small domestic appliances, including induction cooktops, mixer-grinders, air fryers, nutri blenders, and water dispensers; and large domestic appliances, such as washing machines and air-coolers. It also offers appliance heat exchangers, PCBAs, universal motors, copper tubing products, sheet metals, plastic moldings, crossflow fans, induction coils, copper fabricated products, and axial fans. The company also exports its products. The company was incorporated in 2003 and is based in Noida, India.