EPL Limited’s shares jumped almost 5% on positive Q2 FY25 results, with robust growth in revenue and net income. For the second quarter ending September 30, 2024, EPL reported sales of ₹10,862 million, up from ₹10,016 million in the same period last year, reflecting an 8.4% year-on-year growth. Revenue reached ₹11,002 million, up from ₹10,112 million, while net income surged to ₹870 million from ₹505 million, a 72% increase.
Basic earnings per share (EPS) from continuing operations rose to ₹2.73 from ₹1.58 a year ago, with diluted EPS at ₹2.72. For the first half of the fiscal year, sales grew to ₹20,936 million compared to ₹19,118 million a year ago, while revenue increased to ₹21,141 million from ₹19,314 million. Net income also saw a strong rise to ₹1,512 million, compared to ₹1,048 million in the previous year.
Nomura reaffirmed its ‘Buy’ rating on EPL, setting a target price of ₹290, suggesting a potential upside of 14% from the current price of ₹253.50. Key insights from Nomura’s analysis include:
- Q2 Performance: Sales growth of 8.4% YoY was slightly below estimates, but the operating profit margin (OPM) of 20.3% exceeded expectations of around 19%.
- Revenue and Profitability Guidance: EPL maintained its double-digit revenue growth guidance for FY25, with improved gross profit margins (GPM) and meeting OPM targets.
- Medium-Term Outlook: Nomura emphasized EPL’s favorable medium-term growth prospects, with potential sales and EBITDA growth reinforcing a positive outlook.
The strong performance and positive analyst outlook have fueled investor optimism around EPL’s growth trajectory, positioning it well for future gains.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
