Epack Durable
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
EPACK Durable Limited is navigating a complex landscape marked by both opportunities and challenges. Management has emphasized a strategic focus on localization and capacity expansion, particularly through the establishment of a new Greenfield facility in Bhiwadi, which is expected to enhance production capabilities and support diversification into higher-margin segments. This aligns with Vista's forecast of early revenue recovery and stable margins, as the company diversifies its revenue mix beyond the struggling RAC segment. However, regulatory uncertainties and margin pressures from rising costs pose significant risks. The EMS sector's overall growth trajectory, supported by improving pricing power and government incentives, provides a favorable backdrop for EPACK's strategic initiatives. Over the next 12-24 months, key opportunities include the potential for growth in the ODM domain and the impact of the Hisense joint venture. Conversely, watchpoints include the ongoing challenges in the RAC segment, regulatory changes affecting profitability, and the need for improved cash conversion on the balance sheet. Vista's outlook reflects cautious optimism, with a target price of approximately 138.78, indicating a slight expected downside in the near term
Why We Like This Stock
- Strategic investments in localization and capacity expansion are expected to enhance production capabilities and support revenue diversification
- Management's optimism about medium-term growth is bolstered by improving market conditions and potential new product initiatives
- The EMS sector's overall growth and improving pricing power provide a favorable environment for EPACK's strategic initiatives
Things To Watch Out For
- The company faces significant challenges from declining revenues in the RAC segment and regulatory uncertainties impacting profitability
- Margin pressures from increased costs and elevated inventory levels across the industry could hinder financial performance
- Weak cash conversion relative to the asset base remains a concern, impacting overall financial stability
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 1,420 | 2,171 | 1,894 | 2,166 | 2,147 |
| Profit Before Tax (Cr.) | 49 | 74 | 9 | -17 | -10 |
| PBT Margin | 3.4% | 3.4% | 47.5% | -0.8% | -0.5% |
| Net Profit (Cr.) | 40 | 58 | 8 | -15 | -9 |
| Earnings Per Share | 4.2 | 6.1 | 0.8 | -1.6 | -0.9 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| ICICI Securities | ► Hold | 275 | 22-May-2026 |
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.