Buy EPACK Durable; target of Rs 450: ICICI Securities

ICICI Securities is bullish on EPACK Durable has recommended buy rating on the stock with a target price of Rs 450 in its research report dated July 21, 2025.

Broker Research

July 23, 2025 / 14:07 IST

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ICICI Securities's research report on EPACK Durable

Takeaways: (1) The company reported revenue decline of 14.4% YoY, primarily due to exceptionally high base YoY when industry witnessed 70% growth and early monsoon. There was also higher inventory of RAC at end of Mar’25 which impacted primary sales in Q1FY26. (2) EBITDA and PAT margins expanded 156bps and 43bps YoY led by superior product mix, primarily contributed by components and LDA segments. (3) The company has added 14 new customers in Q1FY26. This will steadily reduce dependence on its large consumers and RAC business. (4) EPACK is progressing well on its strategic tie up with Hisense and may start commercial production of white goods in H2FY26. We remain positive on strong growth prospects led by business diversification, capacity addition and strategic tie ups.

Outlook

We cut FY26-27E earnings by 2-8% to factor in Q1FY26 results and weakness in RAC markets. Maintain BUY with DCF-based revised TP of INR 450 (implied
target P/E of 31.9x FY27E).

For all recommendations report, click here