Buy EPL; target of Rs 315: ICICI Securities

ICICI Securities's research report on EPL

EPL’s print was impressive despite challenges, with personal care tubes’ revenue growing 19.9% YoY and oral care returning to growth, at 3.4% YoY, helping EPL achieve double-digit revenue growth. This is despite weakness in India, and a major oral care customer de-stocking in Europe. EPL remains confident of double-digit revenue growth, and its order book in personal care remains strong. Post a successful greenfield expansion in Brazil, the company is now expanding its footprint in Thailand, which should aid growth (as seen in Americas). Europe’s consecutive margin slip appears transient; and EPL has retained its mid-teens guidance.

Outlook

We have cut our FY26–27E EPS by 2-3% and TP to INR 315 (vs. INR 320) with unchanged FY27E P/E multiple of 20x. Maintain BUY.