EPL Ltd
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
EPL Limited's recent strategic initiatives, particularly its aggressive capacity expansion and focus on the high-growth Beauty & Cosmetics segment, are pivotal in shaping its financial outlook. Management's commentary highlights a robust growth trajectory, with a projected revenue increase of 11% to 13% driven by successful market share gains and a strong customer pipeline. The company's ability to implement a pass-through pricing model amid input cost inflation is crucial for maintaining stable margins, despite challenges from geopolitical tensions affecting raw material costs. Vista's forecast aligns with these developments, anticipating stable revenue growth and margins, supported by a strong balance sheet and disciplined capital allocation. The packaging industry is currently expanding, providing a favorable backdrop for EPL, although competitive pricing pressures and supply chain disruptions remain watchpoints. Over the next 12-24 months, EPL's strategic focus on sustainable packaging and the upcoming Indovida merger are expected to enhance its market position, while potential margin volatility from ongoing geopolitical issues warrants close monitoring
Why We Like This Stock
- EPL's aggressive capacity expansion and focus on the Beauty & Cosmetics segment are driving strong revenue growth
- The implementation of a pass-through pricing model is helping to protect margins against input cost inflation
- The upcoming merger with Indovida is expected to enhance EPL's scale and market presence, creating significant growth opportunities
Things To Watch Out For
- Geopolitical tensions, particularly in the Middle East, are impacting raw material availability and costs, posing risks to margins
- Operational inefficiencies in the European segment may lead to near-term margin pressures
- Execution risks related to the integration of Indovida could affect operational efficiency and strategic goals
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 3,916 | 4,213 | 4,763 | 5,308 | 5,815 |
| Profit Before Tax (Cr.) | 328 | 425 | 509 | 560 | 633 |
| PBT Margin | 8.4% | 10.1% | 1068.7% | 10.5% | 10.9% |
| Net Profit (Cr.) | 222 | 345 | 407 | 448 | 500 |
| Earnings Per Share | 7.0 | 10.6 | 12.6 | 13.8 | 15.6 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| ICICI Securities | ▲ Buy | 310 | 18-May-2026 |
| Kotak Securities | ▲ Buy | 260 | 18-May-2026 |
| Motilal Oswal | ▲ Buy | 290 | 12-Aug-2026 |
| Nomura | ▲ Buy | 350 | 01-Apr-2026 |
Company Overview
Show Company Profile
EPL Limited, together with its subsidiaries, manufactures and sells plastic packaging materials in the form of multilayer collapsible tubes, corrugated boxes, and laminates in the Americas, Europe, Africa, the Middle East, South Asia, and the East Asia Pacific. The company provides dispensing systems, caps and closures, laminated tubes, laminates, and extruded tubes. It also offers sustainable laminated tubes, including Platina, Platina Pro, Platina Me, Platina Vision, Etain, Organic Green Maple Leaf, Green Maple Leaf, Super Titanium, and Clarion. In addition, the company provides printing technologies, such as NEOSeam, glitters, glow in the dark, 3D foil, screen braille effect, and lens foil effect. It serves the beauty and cosmetics, health and pharmaceuticals, food, home, and oral care industries. The company was formerly known as Essel Propack Limited and changed its name to EPL Limited in October 2020. EPL Limited was incorporated in 1982 and is based in Mumbai, India.