Epigral Ltd
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
Epigral Ltd is strategically pivoting towards high-value downstream integration, focusing on expanding its product portfolio and enhancing operational efficiencies. Management's commitment to transitioning from a commodity-heavy model to a more resilient structure is expected to drive revenue growth, with a target of 10% to 12% volume growth in FY27 supported by capacity expansions in Epichlorohydrin and CPVC. Despite facing short-term headwinds from geopolitical tensions and raw material price volatility, the company's diversified offerings and strong domestic demand position it favorably in the specialty chemicals sector. Vista's financial outlook reflects stable revenue growth and improving margins, with a fair valuation aligned with intrinsic value. The anticipated commissioning of new facilities and investments in renewable energy are expected to bolster profitability and market share. However, execution risks and regulatory pressures remain watchpoints. Over the next 12-24 months, key opportunities include capturing market demand through capacity expansions, while headwinds may arise from geopolitical uncertainties and rising input costs
Why We Like This Stock
- Strategic pivot towards high-value downstream integration is expected to enhance revenue growth
- Capacity expansions in Epichlorohydrin and CPVC are projected to drive volume growth of 10% to 12% in FY27
- Strong domestic demand and a diversified product portfolio provide resilience against market volatility
Things To Watch Out For
- Geopolitical tensions may disrupt supply chains and increase raw material costs, impacting profitability
- Execution risks related to the ramp-up of new capacities could delay optimal utilization
- Regulatory pressures in the chemical industry pose challenges to operational compliance and cost management
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 1,929 | 2,550 | 2,527 | 2,583 | 2,650 |
| Profit Before Tax (Cr.) | 291 | 534 | 342 | 380 | 382 |
| PBT Margin | 15.1% | 20.9% | 13.5% | 14.7% | 14.4% |
| Net Profit (Cr.) | 238 | 438 | 257 | 284 | 286 |
| Earnings Per Share | 55.3 | 101.7 | 59.7 | 65.9 | 66.3 |
Analyst Recommendations
No analyst recommendations available.
Company Overview
Show Company Profile
Epigral Limited manufactures and sells chlor-alkali and derivative products in India and internationally. The company offers chlorinated polyvinyl chloride (CPVC) resin, epichlorohydrin, chloromethanes value chain, hydrogen peroxide, caustic soda and potash, chlorine, hydrogen, chloromethanes, captive power plant (CPP), and chlorotoluene value chain, as well as operates wind-solar hybrid power plant. Its products are used in CPVC pipes and fittings, windmills, construction, paints and coatings, electronics, water treatment, agrochemicals, pharmaceuticals, refineries, soap and detergents, fluoropolymers, paper and pulp, textiles, alumina, polyurethane foam, lithium, and polytetrafluoroethylene (PTFE) pipes. The company was formerly known as Meghmani Finechem Limited and changed its name to Epigral Limited in August 2023. Epigral Limited was incorporated in 2007 and is based in Ahmedabad, India.