EPL Ltd
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
EPL Limited is strategically positioned for sustained growth, driven by its focus on the high-value Beauty & Cosmetics segment and the recent merger with Indovida, which is expected to enhance its market reach and product offerings. Management's commitment to operational excellence and digital transformation, alongside a disciplined approach to capital allocation, supports a stable revenue outlook with projected growth in the low double digits. Despite facing challenges from geopolitical tensions affecting raw material costs and supply chain disruptions, EPL's ability to implement a pass-through pricing model mitigates margin pressures. The packaging industry is experiencing robust demand for sustainable solutions, which aligns with EPL's strategic initiatives. Over the next 12-24 months, key opportunities include expanding into emerging markets and leveraging innovation in sustainable packaging, while watchpoints include potential margin volatility from ongoing geopolitical issues and the successful integration of the Indovida merger. Overall, Vista's forecast reflects a fair valuation with an expected upside of approximately 11%, underpinned by a strong balance sheet and stable margins
Why We Like This Stock
- Strong growth in the Beauty & Cosmetics segment, with management targeting low double-digit revenue growth
- The merger with Indovida is expected to enhance EPL's scale and market presence, driving long-term value
- EPL's focus on sustainable packaging aligns with industry trends, providing a competitive edge
Things To Watch Out For
- Geopolitical tensions are impacting raw material costs and supply chain stability, posing risks to margins
- Execution risks related to the integration of Indovida could affect operational efficiency
- Competitive pricing pressures in the packaging industry may challenge margin stability
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 3,916 | 4,213 | 4,763 | 5,300 | 5,800 |
| Profit Before Tax (Cr.) | 328 | 425 | 509 | 543 | 615 |
| PBT Margin | 8.4% | 10.1% | 10.7% | 10.2% | 10.6% |
| Net Profit (Cr.) | 222 | 345 | 407 | 434 | 486 |
| Earnings Per Share | 7.0 | 10.6 | 12.6 | 13.4 | 15.2 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Motilal Oswal | ▲ Buy | 290 | 12-Aug-2026 |
| ICICI Securities | ▲ Buy | 310 | 18-May-2026 |
| Kotak Securities | ▲ Buy | 260 | 18-May-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 Americas, Europe, Africa, the Middle East, South Asia, and East Asia Pacific. It offers dispensing systems, caps and closures, laminated tubes, laminates, and extruded tubes. The company also provides laminated tubes, including Platina, Platina Pro, r-Platina, Platina Me, Platina Vision, Platina Plus, Etain, Super Titanium, and Clarion, as well as Organic Green Maple Leaf and Green Maple Leaf. In addition, it offers printing technologies, such as NEOSeam, glitter, glow in the dark, 3D foil, screen braille effect, and lens foil effect. The company's products are used in the beauty and cosmetics, oral care, food and nutrition, pharmaceutical and health, and home care industries. It exports its products. 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 headquartered in Mumbai, India.