BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
EPL Ltd.’s operating performance in the recent quarters (till Q2 FY23) have been muted, due to a combination of sluggish demand and rising costs owing to inflation.
However, since Q3 FY23, the company’s operating performance improved, led by demand revival and softening of raw material and energy prices. Going ahead, we expect EPL to register earnings growth, further aided by incremental revenue from Brazil.
EPL has tapped into the Brazilian market (accounting for ~8.3% of its global market of ~$6.2 billion) by strategically building facilities in close proximity to key demand areas in the region to gain competitive edge.
We expect revenue/Ebitda of ~Rs 1.35 billion/Rs 0.3 billion from the region in FY25.
EPL’s sustainable tubes are gaining market prominence, driven by robust demand. This is evident from a significant volume growth of ~2.5 times YoY in FY23.
The company expects this upward trend to continue, with volumes projected to double in FY24. Sales contribution from innovations stood at 12% in FY23.
Margins across geographies are expected to improve going ahead, on the back of demand revival in East Asia Pacific/Europe, easing of raw material and energy prices, and price hikes implemented by the company.
We reiterate our 'Buy' rating on EPL with a target price of Rs 270, valuing the stock at 21 times FY25E EPS. (i.e., ~11% discount to the last five years average of ~24 times).
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
RECOMMENDED FOR YOU
Zomato Hikes Platform Fees By 20% Amid Festive Season Demand Surge
Sep 02, 2025
Railways To Upgrade Vande Bharat Trains With More Coaches Amid Rising Demand
Aug 28, 2025
KEC International Targets 15% Growth In FY26 Driven By Strong Demand In T&D Segment
Aug 27, 2025
'Buy' EPL Shares Maintains Systematix, Hikes Target Price Post Inline Q1 Results — Here's Why
Aug 06, 2025
POPULAR