DAM Capital has initiated coverage on EPACK Durables with a Buy rating and a target price of ₹495, highlighting its robust growth prospects in India’s rapidly expanding room air conditioner (RAC) market. The RAC market is expected to grow at a compounded annual growth rate (CAGR) of 14% over FY25–30E, driven by rising temperatures, changing lifestyles, and significant government initiatives to promote localization.
Key Growth Drivers for EPACK Durables:
- Strong R&D capabilities and deep client relationships, including new strategic clients like Hisense.
- Diversification across components, exports, and appliances, with these segments expected to contribute 34% of FY27 revenues, up from 28% in FY24.
- Revenue CAGR of 42% over FY24–27E, supported by stable margins driving a 50% PAT CAGR.
At 34x FY27 earnings, DAM Capital believes valuations are attractive, positioning EPACK Durables as a compelling investment in India’s consumer durables space.
