Mumbai, August 26, 2024: HDFC Securities has selected EPL Limited (EPL) as its ‘pick of the week’, citing the company’s robust financial performance and growth prospects. The brokerage has recommended buying the stock in the ₹245-255 band and adding on dips in the ₹220-230 band, with a base case fair value of ₹274 and a bull case fair value of ₹292 over the next 2-3 quarters.
EPL, the world’s leading manufacturer of laminated plastic tubes, has seen its stock rise 27% in the last year and 42% year-to-date, with positive returns in 6 of the 8 months so far. The company holds a significant market share in oral care and personal care, serving major clients like Unilever, Colgate, and P&G.
HDFC Securities believes EPL’s margins will improve as it increases its share of higher-value personal care tubes. The company’s integrated operations and focus on sustainability make it a preferred partner for its clients. The brokerage expects EPL to achieve a revenue and EBITDA CAGR of 11% and 14%, respectively, over FY24-26E, with improving Return on Capital Employed (RoCE) and Return on Equity (RoE).
With a strong innovation pipeline and commitment to sustainability, EPL is poised to continue gaining market share in the growing laminated tubes industry. HDFC Securities’ recommendation reflects the company’s growth potential and attractive valuation.
